SALT Deduction Resources

The 2017 Tax Cuts and Jobs Act (TCJA) includes a $10,000 limit on the deduction for State and Local Taxes (SALT), which helps finance some of its costs. Large parts of the TCJA are scheduled to expire at the end of 2025, including the SALT cap. Extending all the expiring individual and estate tax provisions from the TCJA would cost $3.9 trillion through 2035. Failing to extend the SALT cap would increase that cost by $1.2 trillion, to $5.1 trillion.  

While extending or expanding the SALT cap could help finance parts of a TCJA extension, allowing the cap to expire would be costly, regressive, and potentially problematic from a tax policy perspective.

The Committee for a Responsible Federal Budget has produced numerous analyses related to the SALT cap and SALT cap repeal or revision. We list those below. To sign up for updates on other budget news, click here.

Analyses of SALT Cap Repeal

Analyses of SALT Cap Modifications

Additional SALT-Related Analysis and Tools

Press Releases and Op-Eds

Below are some key SALT related charts.

10-Year Changes in Revenue Based on SALT Adjustments

  Under Current Law Under Extended TCJA
Let SALT Cap Expire N/A -$1.2 trillion
Extend $10,000 SALT CAP +$1.9 trillion N/A
Extend SALT Cap Above $400k +$1.3 trillion -$410 billion
Extend SALT Cap, Loosened to $15k/$30k +$1.1 trillion -$530 billion
Fully Repeal SALT Deduction +$2.3 trillion +$240 billion
     
Close SALT Cap Workarounds N/A +$180 billion
Extend SALT Cap to Corporate Income Tax +$210 billion +$210 billion
Extend SALT Cap to Business Income Taxes, Closing SALT Cap Workaround N/A +$390 billion

 

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Who Benefits from SALT Relief?

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Average 2022 Tax Cut for Illustrative D.C. Family

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Share of Tax Benefit from SALT Cap Repeal

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Average Tax Cut From SALT Cap Repeal

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Share of Tax Relief for Bottom 60 Percent

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