New $40K tax deduction for homeowners 

NEW: $40K SALT TAX DEDUCTION CAP (2025 to 2029)

Big update for itemizers: the state and local tax (SALT) itemized deduction cap jumped from $10,000 to $40,000 for tax years 2025–2029. 

What counts toward SALT?
• Property taxes
• State income tax (or sales tax, depending on what you claim)

Quick example:
If you pay $7,000 in property taxes + $13,000 in state taxes = $20,000 total.
Before, you were capped at $10,000.
Now, you can potentially deduct the full $20,000 if you itemize. 

Real money impact:
If that’s an extra $10,000 in deductions and you’re in the 32% bracket, that can mean about $3,200 less in federal tax.

The catch:
• You have to itemize (standard deduction filers won’t benefit).
• The benefit phases down if your modified AGI is over $500,000, and it can drop back toward the $10,000 cap at higher incomes. 

Save this for tax time and share with a friend in a high-tax state.

Not tax advice. Talk with your CPA to see if itemizing makes sense for you.

#taxes #saltDeduction #homeowners #personalfinance #propertytax #taxplanning