Question 1

Does the federal $10,000 SALT cap limit my New York itemized deductions?

Accepted Answer

No. Since TY2018 New York computes itemized deductions under its own §615 rules, decoupled from the TCJA — you can itemize for New York even when taking the federal standard deduction. (New York never allowed a deduction for its own income tax, but real-property taxes remain deductible under state rules.) (Sources: Tax Law § 615; IT-201-I (2025 instructions).)

Question 2

How does the high-income phase-down work?

Accepted Answer

§615(f) phases down itemized deductions starting at $100,000 of New York AGI. Above $1,000,000 of NYAGI the deduction is limited to 50% of charitable contributions ONLY — every other itemized deduction is eliminated — and above $10,000,000 it drops to 25% of charitable contributions, a limit extended through tax years ending before 2030 by Chapter 59 of the Laws of 2026. (Sources: Tax Law § 615.)

Question 3

Should high earners even bother tracking deductions?

Accepted Answer

Charitable contributions, yes — they are the only surviving deduction above $1M NYAGI and still deliver 25–50 cents of deduction per dollar. Mortgage interest, property taxes and miscellaneous deductions deliver nothing at those income levels, which changes bunching and donor-advised-fund math relative to federal planning. (Sources: Tax Law § 615; IT-201-I (2025 instructions).)

New York itemizing ignores the federal SALT cap — but high earners lose almost everything to the phase-down.