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Major increase in State and Local Tax (SALT) deduction limit and extension to 2033.

This bill raises the cap on the deduction for State and Local Taxes (SALT) from federal taxable income. The current $10,000 limit is increased to $60,000 ($120,000 for joint filers), and this change is extended until January 1, 2033. The new limit will also be adjusted annually for inflation for taxable years beginning after 2023.
Key points
The cap on deducting State and Local Taxes (SALT) increases from $10,000 to $60,000 ($5,000 for married individuals filing separately), and to $120,000 for married couples filing jointly.
This change allows taxpayers to deduct a larger amount of state and local taxes.
The higher deduction limit is extended until January 1, 2033, and will be adjusted annually for inflation for taxable years after 2023.
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Additional Information
Print number: 118_HR_3098
Sponsor: Rep. LaLota, Nick [R-NY-1]
Process start date: 2023-05-05
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SALT Fairness and Deficit Reduction Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3098.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-05-05.

What are the main provisions?

Key points include:

  • The cap on deducting State and Local Taxes (SALT) increases from $10,000 to $60,000 ($5,000 for married individuals filing separately), and to $120,000 for married couples filing jointly.
  • This change allows taxpayers to deduct a larger amount of state and local taxes.
  • The higher deduction limit is extended until January 1, 2033, and will be adjusted annually for inflation for taxable years after 2023.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. LaLota, Nick [R-NY-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy