SALT Fairness and Marriage Penalty Elimination Act

This bill would increase the limitation on how much taxpayers can deduct for state and local taxes (SALT) paid to their states and localities. Currently, federal law caps this deduction at $10,000 per individual or $5,000 for married individuals filing separately. If enacted, this bill would raise that cap to $100,000 for individual filers and $200,000 for married couples filing jointly.

For taxpayers in high-tax states, this change could result in lower federal income taxes by allowing them to deduct more of their state and local tax payments. The bill is currently in the House and has been referred to committee for consideration. Whether it will advance further in the legislative process remains to be determined.