SALT Cap Expansion & PTE Tax Flexibility
For the 2026 tax season, Sacramento residents can now benefit from the SALT deduction cap increase to $40,000 (retroactive to 2025). Furthermore, California has extended the Pass-Through Entity (PTE) Elective Tax through 2031. A critical 2026 update: Business owners who underpay their June 15th prepayment are no longer automatically disqualified from the election, though a 12.5% credit reduction now applies.
⚖️ $40K SALT Deduction
Higher itemized deduction limits for California property owners and high-income earners.
🔄 PTE Election Extension
The 9.3% entity-level tax workaround remains a vital tool for S-Corps and LLCs through 2031.
📈 SDI Rate Change
Adjusted State Disability Insurance (SDI) withholding rate of 1.3% effective Jan 1, 2026.
Sacramento CPA Network
Serving California’s Capital and the Central Valley. Connecting government contractors, healthcare groups, and ag-tech startups with 12-Pillar Verified CPAs.
Sacramento Valley City Clusters
The Sacramento 12-Pillar Advantage
- ✔ Strategy for the 2026 **$40,000 SALT deduction limit**.
- ✔ Compliance for the **extended 9.3% PTE Tax election** (SB 132).
- ✔ Specialized accounting for **Ag-Tech & Government Sector** firms.
- ✔ High-fidelity tracking via exclusive Twilio-integrated leads.