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Salt Deduction Cap 2025

Salt Deduction Cap 2025. Under the tcja, the salt cap expires at the end of calendar 2025 unless the next president and congress keep it alive. Here’s why taxpayer relief is still likely next year a $10,000 cap on deductions on federal returns for state and local taxes paid is set to expire at the end of 2025


Salt Deduction Cap 2025

Back in 2017, when trump and congress reformed the tax code via the tax cuts and jobs act, they opted to cap the salt deduction at $10,000, which meant many blue state. The average salt deduction claimed by taxpayers earning between $200,000 and $500,000 in 2017, the last year without the cap, was $23,000, according to irs data.

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