The $40,000 cap would begin this year, with the same $500,000 income phaseout, and both figures would rise by 1% annually from 2026 through 2033.

The proposed ‘One Big Beautiful Bill Act’ would raise the SALT deduction cap to $40,000, benefiting wealthier taxpayers in high-tax states. Critics warn it could widen inequality and reduce federal revenue.

Final tax reform bill preserves SALT and PTET deductions for traders and professionals, avoiding SSTB carve-outs and ensuring pass-through parity.