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Repeal of State and Local Tax (SALT) Deduction Cap

This bill aims to remove the cap on deducting state and local taxes (SALT) from federal income tax. This means citizens will be able to deduct the full amount of state and local taxes paid, potentially lowering their federal tax burden. The change applies to income earned from January 1, 2023.
Key points
Ability to deduct the full amount of state and local taxes paid from federal income tax.
Potential reduction in federal income tax for individuals paying high state and local taxes.
Changes are effective for tax years beginning after December 31, 2022.
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Additional Information
SALT Deductibility Act
Print number: HR 2555
Sponsor: Rep. Garbarino, Andrew R. [R-NY-2]
Process start date: 2023-04-10