In the Senate’s version of the reconciliation bill, pushed heavily by House Republicans, the SALT deduction would allow people to deduct up to $40,000 per year for five years from their federal taxes. Once an individual’s annual income hits $500,000, the SALT deduction phases out.
While the bill is still awaiting a final vote in the House, Republicans in the lower chamber are expected to pass it by July 4, meeting Trump’s self-imposed deadline.
If and when the bill passes, here’s what the new SALT deduction provisions mean for you:
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What does SALT mean?
When they file, taxpayers have two choices: the standard deduction or the itemized deduction, which includes SALT — whichever is greater. In tax year 2025, the standard deduction was $15,000 for single filers
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