The Tax Cuts and Jobs Act capped the state and local tax (SALT) deduction at $10,000. This “SALT cap” is scheduled to expire after 2025. The future of the cap is sure to play a key role in tax policy negotiations on Capitol Hill next year. Some Democratic and Republican lawmakers, mainly from high-tax states, are urging the full restoration of the SALT cap. Earlier this year, the SALT Marriage Penalty Elimination Act proposed to increase the SALT cap to $20,000 for married couples filing jointly with incomes up to $500,000. That bill failed in the House of Representatives. President-Elect Donald Trump has vowed to “get SALT back,” leaving many to assume he supports ending the SALT cap.
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