The State and Local Tax (SALT) Deduction

The State and Local Tax (SALT) deduction allows taxpayers who itemize their federal tax returns to deduct up to $10,000 of eligible state and local taxes, including property, income, or sales taxes. This deduction, capped by the Tax Cuts and Jobs Act of 2017, is particularly beneficial for taxpayers in high-tax states but is set to expire after 2025 unless extended or modified.