SALT Fairness and Marriage Penalty Elimination Act
SALT Fairness and Marriage Penalty Elimination Act
Plain Language Summary
# SALT Fairness and Marriage Penalty Elimination Act Summary **What the Bill Would Do** This bill would increase the federal tax deduction limit for state and local taxes (SALT) from the current $10,000 cap to $100,000 for individual filers and $200,000 for married couples filing jointly. The SALT deduction allows taxpayers to deduct state and local income, property, and sales taxes from their federal taxable income, reducing the federal taxes they owe. Currently, this deduction is capped at $10,000, a limit that was set in 2017 and is scheduled to expire after 2025. **Who It Affects and Current Status** The bill would primarily benefit higher-income households and residents in states with higher state and local taxes, particularly in states like New York, California, and New Jersey.
Lower and middle-income taxpayers would see minimal impact since most don't deduct state and local taxes above the current $10,000 limit. The bill is currently in committee and has not yet been voted on by the full House of Representatives.
CRS Official Summary
SALT Fairness and Marriage Penalty Elimination ActThis bill increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $100,000 ($200,000 for married individuals filing a joint federal income tax return). Under current law, the SALT deduction cap is $10,000 ($5,000 for married individuals filing separate federal income tax returns).
Latest Action
Referred to the House Committee on Ways and Means.