The Senate just passed Trump’s new tax bill, and it includes a major change to the State and Local Tax (SALT) deduction cap that will impact many of you, especially if you live in a high-tax state.

Here’s what you need to know:

🔹 SALT Deduction Cap Changes

• Old limit: $10,000
• New limit: $40,000 for most taxpayers ($20,000 if married filing separately)

📉 Phase-Out for Higher Earners

• Starts at $500k AGI (or $250k if filing separately)
• Cap reduces by 30% of the income over that threshold
• But the minimum cap remains: $10k/$5k

🚫 New Restrictions

• “Substitute payments” (like state charitable tax credit schemes) now count toward the limit
• Foreign property taxes are deductible only if related to U.S. business use
• SALT paid at the entity level by Partnerships and S Corps flows through to owners

💡 Why This Matters
If you’re in a high-tax state and typically pay $20k–$40k+ in SALT, this change could restore tens of thousands of dollars in deductions you lost under the $10k cap — and potentially save you $3,600 to $5,500+ in federal taxes depending on your bracket.

👉 Bottom Line:
If you’re unsure how this applies to you, or you want to make sure you’re positioned to take full advantage of this expanded deduction in 2025, reach out. Planning ahead will make all the difference here.

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