Pulling information from the wikipedia entry on Salsa20:
Salsa20 has been selected as a Phase 3 design for Profile 1 (software) by the eSTREAM project, receiving the highest weighted voting score of any Profile 1 algorithm at the end of Phase 2. Salsa20 had previously been selected as Phase 2 Focus design for Profile 1 (software) and as a Phase 2 design for Profile 2 (hardware) by the eSTREAM project, but was not advanced to Phase 3 for Profile 2 because eSTREAM felt that it was probably not a good candidate for extremely resource constrained hardware environments.
As of 2015, there are no published attacks on Salsa20/12 or the full Salsa20/20; the best attack known breaks 8 of the 12 or 20 rounds.
In 2005, Paul Crowley reported an attack on Salsa20/5 with an estimated time complexity of 2165, and won Bernstein's US$1000 prize for "most interesting Salsa20 cryptanalysis". This attack, and all subsequent attacks are based on truncated differential cryptanalysis. In 2006, Fischer, Meier, Berbain, Biasse, and Robshaw reported an attack on Salsa20/6 with estimated time complexity of 2177, and a related-key attack on Salsa20/7 with estimated time complexity of 2217.
In 2007, Tsunoo et al. announced a cryptanalysis of Salsa20 which breaks 8 out of 20 rounds to recover the 256-bit secret key in 2255 operations, using 211.37 keystream pairs. However, this attack does not seem to be comparative with the brute force attack.
In 2008, Aumasson, Fischer, Khazaei, Meier, and Rechberger reported a cryptanalytic attack against Salsa20/7 with a time complexity of 2153, and they reported the first attack against Salsa20/8 with an estimated time complexity of 2251. This attack makes use of the new concept of probabilistic neutral key bits for probabilistic detection of a truncated differential. The attack can be adapted to break Salsa20/7 with a 128-bit key.
In 2012 the attack by Aumasson et al. was improved by Shi et al. aainst Salsa20/7 (128-bit key) to a time complexity of 2109 and Salsa20/8 (256-bit key) to 2250.
In 2013, Mouha and Preneel published a proof that 15 rounds of Salsa20 was 128-bit secure against differential cryptanalysis. (Specifically, it has no differential characteristic with higher probability than 2−130, so differential cryptanalysis would be more difficult than 128-bit key exhaustion.)
Salsa20 is about as secure and analyzed as one could reasonably ask for. It is one of the few alternatives to AES that a knowledgeable cryptographer could comfortably suggest for usage in the real world.