04/03/2026
A quick tax update that may matter if you own property or are thinking about buying:
For 2026, the State and Local Tax (SALT) deduction cap has increased to $40,400, up from the long‑standing $10,000 limit. This means eligible homeowners may be able to deduct more of their property taxes and state income (or sales) taxes on their federal return, if they itemize.
A few important notes:
This applies to state income or sales taxes + property taxes combined
You must itemize deductions to benefit
The expanded cap begins to phase out at higher income levels
The higher limit is temporary and currently scheduled to last through 2029
For homeowners in higher‑tax areas, this change could make itemizing worthwhile again and meaningfully impact after‑tax ownership costs.
As always, tax rules are nuanced, so it’s best to review your situation with a CPA or tax professional.
If you’re thinking about buying, selling, or planning ahead, understanding how changes like this affect the bigger picture can be helpful.