3. Homeowners Get a Big SALT Break
A major win for homeowners in high-tax states
The cap on deducting state and local taxes (SALT) rises sharply from $10,000 to $40,000 ($20,000 if married filing separately).
This includes:
- State income or sales taxes
- Local taxes
- Property taxes
Pros
- Significant relief for homeowners
- Makes itemizing worthwhile again for many
- Especially helpful in high-tax states
Cons
- Limited for very high-income earners
- No benefit if you take the standard deduction
How to Take Tax Advantage of the 2025 SALT Deduction Increase | Year-End Tax Guide
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