The SALT (State and Local Tax) changes under OBBBA

OBBBA Is Now Law — and There’s Big News for High-Tax States 🏡💰 hashtag#OBBBA, hashtag#SALT

One provision that really caught my attention: the SALT (State and Local Tax) deduction cap has increased fourfold — from $10,000 to $40,000! This is a major tax relief for taxpayers of high-tax states, especially on the West and East Coasts, where property taxes alone often exceed $10K. Add in state income taxes, high earners can now deduct up to $40K — a significant increase over the previous cap.

Even though Washington State has no income tax (aside from the capital gains tax on high earners), many of our clients at Block Advisors in Redmond will benefit too. With the average home price around $1.5 million, property taxes for single-family homes often exceed $10K — making the expanded deduction benefit homeowners even here.

📣 If you live in a high-tax state and have a high income: Congratulations — this new SALT cap could save you thousands.

📍Below is a property tax map by the Tax Foundation that highlights how much homeowners pay across the U.S. It’s a great visual to see where the new $40,000 SALT deduction cap will have the biggest impact.

💬 What do you think about this change? Do you see it as a long-overdue correction — or do you think it favors certain taxpayers too heavily? I’d love to hear your thoughts.

OBBBA Is Now Law — and There’s Big News for High-Tax States 🏡💰 hashtag#OBBBA, hashtag#SALT

One provision that really caught my attention: the SALT (State and Local Tax) deduction cap has increased fourfold — from $10,000 to $40,000! This is a major tax relief for taxpayers of high-tax states, especially on the West and East Coasts, where property taxes alone often exceed $10K. Add in state income taxes, high earners can now deduct up to $40K — a significant increase over the previous cap.

Even though Washington State has no income tax (aside from the capital gains tax on high earners), many of our clients at Block Advisors in Redmond will benefit too. With the average home price around $1.5 million, property taxes for single-family homes often exceed $10K — making the expanded deduction benefit homeowners even here.

📣 If you live in a high-tax state and have a high income: Congratulations — this new SALT cap could save you thousands.

📍Below is a property tax map by the Tax Foundation that highlights how much homeowners pay across the U.S. It’s a great visual to see where the new $40,000 SALT deduction cap will have the biggest impact.

💬 What do you think about this change? Do you see it as a long-overdue correction — or do you think it favors certain taxpayers too heavily? I’d love to hear your thoughts.