07/29/2025
Big tax relief coming!
Many of my clients have been frustrated by the $10,000 cap on the state and local tax (SALT) deduction.
If you live in a high property tax area, have a good income, and itemize your deductions on your taxes, then you most likely have felt the limitation of the $10k cap.
Well, relief is finally here!
🚨 New SALT Cap: $40,000 🚨
Starting in 2025, the SALT deduction cap is jumping from $10,000 to $40,000!!! This is huge for homeowners in states with high property taxes or high income taxes.
What's the catch?
There is a phase-out ☹️
The $40,000 deduction begins to phase out for adjusted gross incomes (AGI) over $500,000 (joint filers) and is fully phased out (back to $10k) at $600k of AGI.
This change isn't permanent, unfortunately ⏳
This new $40k deduction is in place through 2029 and then reverts back to the $10k limit.
👀 What this means for you:
If you pay a lot of property taxes and already itemize deductions, this could be a great chance to have larger deductions moving forward!
It's not just about what you earn - it's about what you keep! That's why tax planning is so important.
🔍 Curious how this will affect your 2025 tax bill?
Let's connect.
