SALT Tax Deduction

Understanding the SALT tax deduction (state and local tax deduction) can help you maximize your itemized deductions by reducing your federal tax liability. This tax break allows you to claim certain state and local taxes you’ve paid, including income tax, sales tax, and property taxes, up to an annual limit. SALT stands for state and local taxes, including income, sales, and property taxes paid to state and local governments (NOT the federal government). The SALT tax deduction lets taxpayers who itemize subtract those taxes from their federal taxable income. To claim this deduction, you must itemize; you can’t take the SALT deduction if you claim the standard deduction. In 2025, the SALT cap rose from $10,000 to $40,000 for most filers (half that amount for married filing separately). When you itemize on Schedule A (form 1040) you can include the total amount of eligible taxes paid, up to the annual limit. This can your tax liability, meaning you might end up with a lower tax bill or get more money back as a tax refund. The SALT tax deduction only applies if you itemize deductions on your federal income tax return. If you choose to take the standard deduction, you won’t be able to deduct SALT. If you live in a high-tax state, the expanded SALT deduction cap could make a noticeable difference in your next tax return. Tax + Financial Services of NY can help you navigate all the changes and claim every possible tax break that you qualify for under current law so call our office at (631) 585-9698. #2026Taxes #SALT #SALTdeduction #itemizeddeductions #longislandtaxes #ronkonkoma #familyowned #taxservices #taxservicesLI #taxservicesNY