SALT Fairness and Marriage Penalty Elimination Act

This bill raises the cap on the state and local tax (SALT) deduction. Taxpayers could deduct up to $100,000 in SALT. Married couples filing jointly could deduct up to $200,000. This is a big jump from the current $10,000 cap (and $5,000 for married filing separately) . The change would apply to tax years starting after December 31, 2024.

What this means: People who itemize, especially in states with higher taxes, could deduct more and may owe less in federal income taxes. Married couples filing together would no longer face a “marriage penalty” on this deduction because their cap would be double the single filer amount.

Key points

• Who is affected: Taxpayers who itemize deductions and pay state/local income or property taxes.
• What changes: SALT deduction cap increases to $100,000; $200,000 for joint filers (from today’s $10,000 cap) .
• When: Applies to tax years beginning after December 31, 2024.