President Donald Trump’s Big Beautiful Bill, passed in July 2025, raised the SALT deduction cap to $40,000 from $10,000, potentially saving homeowners $10,500 annually. Realtor.com identified 10 states and metro areas set to benefit most from this increase, with NJ and San Jose leading the pack. The new law also increases the standard deduction, affecting taxpayers’ itemization decisions.
The SALT deduction cap increase phases out for those earning $600,000 or more, impacting wealthier individuals’ tax planning strategies. Taxpayers may adjust income to qualify for extra deductions, affecting Roth conversions and capital gains. Charitable giving and medical expenses may increase to maximize deductions. This change could also influence the real estate market in high-tax areas.
Tasha Preisner from DeMar Consulting Group predicts the deduction increase will benefit middle- to upper-middle-class earners in high-tax states. Taxpayers might need professional help with tax planning due to the complexity of itemizing deductions. The law could impact relocation decisions, real estate purchases, and charitable giving in the coming years. 1. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average dropping 500 points due to concerns over rising inflation rates and potential interest rate hikes by the Federal Reserve.
2. The unemployment rate fell to 5.8% in the latest report, with 559,000 jobs added in May. This marks a positive trend in the labor market as businesses continue to reopen and hire new workers.
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Read more at Yahoo Finance: 10 States That Will Benefit Most From SALT Deduction Cap Increase