The Blubber

House Republicans are pushing to raise the deduction limit for state and local taxes — known as SALT — as part of President Donald Trump’s broader tax and spending proposal.

On Monday afternoon, the House Ways and Means Committee released its draft of the bill, including a provision that would raise the SALT deduction cap to $30,000 for individuals with a modified adjusted gross income of $400,000 or less.

Still, the SALT cap remains one of the more contentious parts of ongoing tax negotiations and is subject to change as the bill moves forward. The committee is set to debate and vote on the measure Tuesday afternoon.

Background: The SALT Cap and Ongoing Debate

The $10,000 SALT deduction cap was introduced under the 2017 Tax Cuts and Jobs Act (TCJA). Without intervention from Congress, that cap will expire after 2025. Under current law, taxpayers who itemize their deductions cannot write off more than $10,000 in state and local income and property taxes combined.

Raising that limit has become a central issue for lawmakers from high-tax states like New York, California, and New Jersey. With Republicans holding only a slim House majority, these members may have significant leverage in the negotiations.

While the SALT cap was originally enacted under Trump’s 2017 tax legislation, he reversed course during the campaign, promising to restore the full deduction if re-elected. Since returning to office, he has renewed his call for SALT reform.

Despite these efforts, a complete repeal is considered unlikely due to budget constraints and competing priorities. “It all has to come together in the context of the broader package,” said Garrett Watson, policy director at the Tax Foundation, who noted that a higher cap is still on the table.

Who Benefits from the SALT Deduction?

To claim the SALT deduction, taxpayers must itemize — choosing between that and the standard deduction when filing their returns. The current SALT cap is $10,000, and other itemizable expenses include medical costs above 7.5% of adjusted gross income and charitable donations.

Since the TCJA took effect in 2018, the standard deduction has nearly doubled and is adjusted annually for inflation. For 2025, it will be $15,000 for single filers and $30,000 for joint filers.

As a result, roughly 90% of taxpayers now take the standard deduction, according to the IRS. Those who do itemize tend to have higher incomes and greater exposure to state and local taxes — the very group most impacted by the SALT cap.