TCJA: SALT deduction capped at $10,000, hurts blue-state middle class
Enacted8/10
Federal · Tax Cuts and Jobs Act, Pub. L. 115-97 · Dec 22, 2017
Impact 8/10
Capped the state and local tax deduction at $10,000, sharply limiting deductions for homeowners in high-tax states (CA, NY, NJ) who previously deducted $30,000–$60,000. Functionally a tax increase for an estimated 11 million upper-middle-income itemizers. The Big Beautiful Bill (2025) raised the cap to $40,000 for incomes under $500,000.
TaxesWorking-age adultsSeniors (65+)Middle-incomeHigh-incomeImmigrants
Sources
✓ Verified against primary sources 2026-08-16