Potential Changes to the State and Local Tax (SALT) Deduction Limit

A caucus of 33 representatives is battling to remove or raise the US$10,000 cap on SALT deductions imposed in the 2017 Republican tax-cut package. Success at getting that included in final legislation this fall would offer relief to middle and higher-income taxpayers, many of whom included the deduction in the calculation of whether they could purchase a home.

On Monday they won inclusion in a critical budget plan released by Senate Democrats, explicitly provided for making the SALT deduction more generous.