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 with tax year 2025. This increased limitation will be in effect through tax year 2029.
For taxpayers with Adjusted Gross Income (AGI) over $500,000 the $40,000 SALT limitation will be phased out to the previous $10,000 limitation.
For taxpayers with Adjusted Gross Income (AGI) over $500,000 the $40,000 SALT limitation will be phased out to the previous $10,000 limitation.