The New $40,000 SALT Cap: What It Means for Taxpayers After the Big Beautiful Tax Bill

Congress just passed the “Big Beautiful Tax Bill,” and one of the biggest changes is a major update to the SALT (State and Local Tax) deduction cap. Instead of being limited to $10,000, some taxpayers will now be eligible for a $40,000 SALT deduction — but only temporarily and only if certain income limits are met.