SALT Deductibility Act

# SALT Deductibility Act Summary **What the Bill Would Do:** The SALT Deductibility Act would remove the current $10,000 annual limit on federal tax deductions for state and local taxes (SALT). This cap was put in place in 2017 and is set to expire in 2026. If passed, the bill would allow taxpayers to deduct unlimited amounts of state and local taxes paid—including property taxes, income taxes, and sales taxes—when calculating their federal income taxes. **Who It Affects:** This change would primarily benefit higher-income taxpayers and residents of states with high state and local tax rates, particularly in states like New York, California, New Jersey, and Connecticut. Lower-income taxpayers would see minimal benefit since most don't itemize deductions.

The bill could reduce federal tax revenue and potentially shift the tax burden to other taxpayers. **Current Status:** The bill (HR 430) was introduced in the 119th Congress by Rep. Andrew Garbarino (R-NY) and is currently in committee, meaning it has not yet been voted on by the full House. No action has been taken since its introduction.