SALT Cap Lifted — Here’s How Much You Could Save
After years of debate, Congress has finally raised the long-standing limit on state and local tax (SALT) deductions — a move that could shift the financial picture for homeowners in high-tax areas, such as Westchester. The change, part of the recently passed “Big Beautiful Bill,” increases the SALT cap from $10,000 to as much as $40,000, but not without strings attached.
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Pre-2017: Homeowners could deduct all state and local property, income, and sales taxes with no federal cap.
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2017 Tax Cuts and Jobs Act (TCJA): Introduced a $10,000 cap on state and local tax (SALT) deductions for both individuals and married couples.
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2025 Update: Raises the cap from $10,000 to a scalable amount up to $40,000:
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Itemizers Only: Only taxpayers who itemize deductions can use the SALT benefit; those taking the standard deduction do not qualify.
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Multiple Properties: The expanded deduction can apply across primary, secondary, and investment homes.
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Income-Based Phaseout:
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Full benefit for households earning under $500,000.
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Gradual phaseout between $500,000–$600,000.
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Cap drops back to $10,000 for incomes above $600,000.
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Ralph’s Take
For homeowners in Westchester County, the new SALT cap of up to $40,000 offers some overdue relief from property taxes that often exceed $20,000 a year. The benefit, will expire in 2030, but it still gives many Westchester residents a bit of breathing room after years under the restrictive $10,000 cap.
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