State and local tax deduction
Tax deduction in the United States / From Wikipedia, the free encyclopedia
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The United States federal state and local tax (SALT) deduction is an itemized deduction that allows taxpayers to deduct certain taxes paid to state and local governments from their adjusted gross income.
The SALT deduction intent is to avoid double taxation by allowing taxpayers to deduct state and local taxes from their federal income. It disproportionately benefits wealthy and high-earning taxpayers in areas with comparatively high state and local taxes.[1][2][3]
The Tax Cuts and Jobs Act of 2017 put a $10,000 cap on the SALT deduction for the years 2018–2025.[4] The Tax Policy Center estimated in 2016 that fully eliminating the SALT deduction would increase federal revenue by nearly $1.3 trillion over 10 years.[5]