SALT Fairness for Working Families Act

The SALT Fairness for Working Families Act would modify the federal income tax deduction limit for state and local taxes (SALT). Currently, taxpayers can deduct a maximum of $10,000 in state and local taxes from their federal income taxes. If enacted, this bill would raise that cap to $15,000 for individual filers and $30,000 for married couples filing jointly.

This change would allow taxpayers in high-tax states to deduct more of their state and local tax payments, potentially reducing their federal tax liability. The practical effect would be that some taxpayers, particularly those in states with higher income or property taxes, could see lower federal tax bills if this bill becomes law. The bill is currently in the House and has been referred to committee for consideration.