SALT Fairness for Working Families Act

This bill raises the cap on the federal tax break for what you pay in state and local taxes (often called the SALT deduction). The limit would go up to $15,000 for most single filers and $30,000 for married couples filing jointly, which is higher than today’s $10,000 cap (and higher than $5,000 for those who file married-separate). The change would apply to tax years starting after December 31, 2024.

In plain terms, if you itemize deductions and pay a lot in state and local taxes, you could deduct more of those costs on your federal return than you can now.

• Who is affected: Taxpayers who itemize and pay state and local taxes (like income or property taxes).
• What changes: The SALT deduction cap increases to $15,000 ($30,000 for joint filers), up from the current $10,000 cap (and $5,000 for married filing separately).
• When: For tax years beginning after December 31, 2024.