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SALT Deduction 2025 Changes: Three Key Things to Know Now So, what’s happening with the deduction? Here are three things taxpayers should know about how the SALT deduction works, who benefits, and what’s changing for 2025 tax returns
SALT Deduction 2025: $40,000 Cap Rules Income Limits The One Big Beautiful Bill Act has increased the SALT deduction cap from $10,000 to $40,000 for 2025, but the changes come with important income limitations and expiration dates that every taxpayer needs to understand
SALT Deduction Cap: Higher Limits, New Phaseouts, and . . . - HHM CPAs The SALT deduction cap was raised to a maximum of $40,000 for MFJ and Single taxpayers ($20,000 for MFS taxpayers) for 2025 with the OBBBA The deduction cap is indexed annually from 2026-2029 at 101% of the prior year’s amount
What is the SALT Tax Deduction, and Does it Affect Me? The 2025 Salt Deduction Cap Overhaul: What’s New and Why It Matters Starting with the 2025 tax year (filed in 2026), the SALT cap increases to $40,000 for married filing jointly or head of household, and $20,000 for married filing separately Single filers receive the full $40,000, aligning with joint thresholds for fairness
One Big Beautiful Bill Impacts on Homeowners | H R Block® At a glance The One Big Beautiful Bill Act (OBBBA) introduces tax changes that impact homeowners, including updates to deductions and credits The SALT deduction cap will increase to $40,000 for tax years 2025-2029
What is the SALT Deduction ? How does it affect my taxes? With the One Big Beautiful Bill Act of 2025 now signed into law, the SALT deduction cap has generally quadrupled Starting with tax year 2025: There are some limitations in place
SALT Deduction Changes 2025: What OBBBA Means for Taxpayers Less than a decade ago, eligible state and local tax (SALT) expenses were generally 100% deductible if a taxpayer itemized This was especially valuable in states with higher income or property taxes