🌟 OBBBA SALT Deduction New Cap
The One Big Beautiful Bill Act (OBBBA) brings a change for many taxpayers by temporarily increasing the State and Local Tax (SALT) deduction:
– From 2025–2029, the SALT deduction cap rises to $40,000 ($20,000 if married filing separately), with small annual inflation adjustments starting in 2026.
- Phase-Out Rule: For 2025, the benefit begins phasing out at $500,000 MAGI ($250,000 for separate filers), but a minimum $10,000 deduction is always preserved.
- Pass-Through Entities: State-level SALT workarounds remain intact, allowing partnerships, LLCs, and S corporations to bypass federal SALT limits.
- Bonus Tip: Pairing the expanded SALT deduction with other breaks—like the new senior bonus deduction—can unlock even greater tax savings.
Planning Opportunities: Careful income management—such as spreading out capital gains or Roth conversions—can help you stay below phase-out thresholds and maximize your deductions.

Video script
New tax laws delivers good news for taxpayers in high-tax states. From 2025 to 2029, the SALT deduction cap rises to $40,000 ($20,000 if married filing separately). A phase-out rule applies if your income exceeds $500,000 adjusted gross income ($250,000 if separate), but you’re always guaranteed at least a $10,000 deduction. Pass-through entities—like partnerships, LLCs, and S corporations—can still use state-level SALT workarounds to bypass federal limits. Pairing the expanded SALT cap with the new senior bonus deduction can unlock even greater savings. With smart planning—like spreading out capital gains or Roth conversions—you can maximize these opportunities. This has been a tax saving tip from accounting solutions. Book a time to learn more.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.