2025 SALT - State and Local Tax Deduction Increased
Beginning with tax year 2025 through 2029, the maximum state and local tax (SALT) deduction on "Schedule A - Itemized Deductions" is being increased from $10,000 ($5,000 if married filing separately) to $40,000 ($20,000 if married filing separately).
These amounts increase 1 percent each year though year 2029. In year 2030, the deduction goes back to $10,000 ($5,000 if married filing separately).
The SALT deduction is reduced once modified adjusted gross income (MAGI) exceeds $500,000 ($250,000 if married filing separately). The SALT deduction will be reduced by 30 percent of MAGI exceeding the amounts shown above until it reaches a minimum of $10,000 ($5,000 if married filing separately).
