Once Upon a Time in the World of SALT Deductions…


 Once Upon a Time in the World of SALT Deductions…

Before 2017, homeowners could deduct the full amount of their state and local taxes—property taxes, income taxes, sales taxes—from their federal returns. But with the passage of the 2017 Tax Cuts and Jobs Act, that changed overnight: a $10,000 cap on the State and Local Tax (SALT) deduction was imposed through 2025, leaving many buyers in high-tax states facing a surprising federal tax bill each April Investopedia.

Fast-forward to July 4, 2025—and enter the “One Big Beautiful Bill Act.” For tax years 2025 through 2029, the SALT cap is now quadrupled to $40,000, before phasing down for filers with Modified Adjusted Gross Income above $500,000 InvestopediaBipartisan Policy Center. That means a family in New Jersey paying $25,000 in combined property and state income taxes can once again deduct the full amount—whereas under the old law, they were limited to just $10,000.

What This Means for Homebuyers

  • Greater Affordability: With more SALT deductions available, your federal tax liability drops, effectively lowering your overall cost of homeownership.

  • Cash-Flow Relief: The extra deduction can free up thousands of dollars each year—money you can redirect toward renovations, a bigger down payment, or simply into savings.

  • Planning Ahead: Since the expanded cap is temporary (2025–2029) and phases out for incomes above $500K, now is the time to maximize this window of relief.

How Realtors Can Add Value

  1. Visualize the Savings: Share clear comparison charts on your website or in newsletters that show “SALT cap $10K vs. $40K” scenarios for different buyer profiles.

  2. Co-Market with Tax Pros: Host a webinar or create a co-branded infographic with a trusted CPA to walk buyers through how to claim the expanded SALT deduction on their 2025 returns.

  3. Target High-Tax Areas: Focus outreach in markets where property and state income taxes routinely exceed $10,000—your clients there stand to gain the most immediate benefit.

By weaving this legislative change into your buyer conversations and marketing materials, you’ll demonstrate both market savvy and genuine commitment to reducing your clients’ hard costs. After all, when tax policy shakes up the numbers, Realtors who translate policy into pocketbook impact become the true heroes of the homebuying journey.

— Nate Carver, Premier Lending, Inc.

About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask “right brain” questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.

Listen to more episodes at: https://www.betweentwodoors.com

Sponsored by:
Premier Lending, Inc.
https://www.natecarver.com

NMLS Numbers:
NMLS: 2004738
Licensed by the Department of Financial Protection and Innovation (DFPI). Equal Housing Opportunity.
https://www.nmlsconsumeraccess.com

📞 Contact: 972-832-5761

Follow Us on Social Media:
Facebook: https://www.facebook.com/NateCarverTheMortgageGuy/
LinkedIn: https://www.linkedin.com/in/natecarver/
Twitter: https://twitter.com/NathanC90662223
TikTok: https://www.tiktok.com/@nateyourfavmortgageguy
YouTube: https://www.youtube.com/@betweentwodoors


Location: McKinney, TX, USA

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