House Passes Trump's Bill: SALT Deduction Soars | JQJO

The U.S. House Republicans passed President Trump's spending and tax bill, significantly raising the limit on the state and local tax (SALT) deduction to $40,000 in 2025, phasing out for earners above $500,000. This temporary increase, reverting to $10,000 in 2030, is double the increase in an earlier House bill. While benefiting high-income taxpayers, the bill also reduces itemized deductions for those in the top tax bracket, partially offsetting the SALT benefit. The changes address a key concern for lawmakers in high-tax states.