SALT Marriage Penalty Elimination Act

The SALT Marriage Penalty Elimination Act (H.R. 339) aims to change how married couples deduct state and local taxes (SALT) from their federal income tax returns. Currently, both single filers and married couples filing jointly are limited to a maximum deduction of $10,000; this bill would double that limit to $20,000 for married couples.

The practical impact would be to allow married taxpayers who itemize their deductions to shield an additional $10,000 of their income from federal taxation, provided they pay at least that much in state and local property, income, or sales taxes. Proponents of the change argue it removes a "marriage penalty" where two single individuals can currently deduct a combined $20,000, while a married couple is restricted to half that amount. While the bill was introduced in the 118th Congress, a procedural vote to advance similar language failed in the House in early 2024, and the sponsor has since introduced updated versions of the proposal in the 119th Congress.