Increased State and Local Taxes (SALT)
The 2025 Tax Act has temporary increased the State and Local Taxes (SALT) limitation from $10,000 to $40,000 starting in 2025. This increased deduction will be available through 2029 before reverting back to the $10,000 cap in 2030.
For individuals with AGI over $500,000 the $40,000 will be reduced, but not below the $10,000 limitation. The $500,000 will be indexed each year.
For individuals with AGI over $500,000 the $40,000 will be reduced, but not below the $10,000 limitation. The $500,000 will be indexed each year.