SALT Cap Goes from $10K to $40K—Is Your State Killing Your Profits?
If you live in a high-tax state—think California, New York, or even Texas counties with steep property levies—you’ve long felt the sting of the $10,000 SALT deduction cap. But under the newly enacted Tax Relief for American Families and Workers Act of 2025, that cap quadruples to $40,000 for tax years 2025–2029.
How the New SALT Rules Work
“The SALT cap increase is temporary, income-limited, and indexed—we dug into the bill to confirm every detail.”
– Tonya, in our July webinar
Cap Increase: From $10K to $40K total deduction for state and local income, sales, and property taxes.
Income Limits: Phased out when AGI exceeds $500K (single) / $1M (married filing jointly).
Duration: Applies only from 2025 through 2029—reverts back in 2030.
Why This Matters to You
Digital entrepreneurs often reinvest profits in home offices, equipment, and team retreats—frequently incurring significant state and local taxes along the way. By multiplying your SALT deduction by four, you can:
Free up cash flow for marketing, R&D, or simply more family time.
Avoid surprises at tax-time when your property tax bill tops six figures.
Improve planning accuracy for quarterly estimated payments.
Three Steps to Maximize Your SALT Savings
Gather Your Records: Collect year-to-date property, state income, and sales-tax bills by September.
Project Your AGI: Ensure you stay below the phase-out threshold or plan entity and retirement strategies to minimize AGI.
Book Your SALT Analysis: We’ll calculate exactly how much more you can deduct—and how it flows through your 2025 return.
“Clients in high-tax counties are saving $20K–$30K more than last year—just from the SALT cap bump alone.”
– Tonya
Act Now—This Cap Won’t Last Forever
Come 2030, the cap snaps back to $10K. If you wait, you’ll lose out on a four-year window of unprecedented SALT relief. At Misty Newsome CPA, we’ve built a SALT Impact Review service that:
Models your deduction under both old and new caps
Recommends AGI-management techniques
Integrates SALT planning into your overall tax-strategy roadmap
Ready to quantify your extra $30K–$40K?
Watch our in-depth webinar for live commentary and Q&A: Watch on YouTube
Book a Financial 360 Review today.
We help with the stuff behind the scenes so you can make informed financial decisions, look at the big picture, and focus more on the fun parts of running your business.
Visit our website to book that call, and check us out on our other platforms:
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