MORE SALT PLEASE!

🏡 Tax Relief on the Horizon for Homeowners with High Property Taxes 🏡 

On May 22, 2025, the U.S. House of Representatives passed a major tax bill that could bring welcome relief to homeowners in high-tax states like California, New York, and New Jersey. One of the most talked-about provisions: an increase in the State and Local Tax (SALT) deduction cap from $10,000 to $40,000.

So, what does this mean for homeowners - especially those who pay hefty property tax bills?

💸 A Bigger Deduction Means Lower Federal Taxes

The original $10,000 cap, put in place by the 2017 Tax Cuts and Jobs Act, limited the amount of state and local taxes (including property taxes) that could be deducted from federal income. As a result, many homeowners in expensive metro areas couldn’t deduct the full amount of property taxes they paid.

With the new $40,000 cap, homeowners can now write off a much larger portion of those taxes. For example, someone paying $40,000 in property taxes could now deduct the full amount (versus $10,000 previously) - saving thousands in federal taxes and making homeownership more affordable.

🏠 Stabilizing Affordability and Home Values

In areas where property taxes routinely exceed $30,000 - $50,000, this change eases the financial pressure and makes it more feasible for buyers to afford and justify higher-priced homes. Long term, that could help stabilize or even support home values in high-tax zip codes.

📌 Bottom Line:

If you’re a homeowner in a high-tax area or considering buying in one, this change could improve your bottom line in 2025 and beyond - as long as the Senate also approves the bill. Want to know how this might affect your specific tax situation or your property’s value? Let’s talk.