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Increased Tax Deduction for State and Local Taxes

This bill aims to increase the amount citizens can deduct from their federal income taxes for state and local taxes paid. This change could mean lower tax bills for many, especially those in high-tax states. The new rules will apply starting from the 2023 tax year.
Key points
The State and Local Tax (SALT) deduction limit increases from $10,000 to $50,000.
For married individuals filing separately, the limit increases from $5,000 to $25,000.
These changes apply to tax years beginning after December 31, 2022.
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Additional Information
Print number: 118_HR_1260
Sponsor: Rep. Santos, George [R-NY-3]
Process start date: 2023-02-28