Who stands to benefit from the new SALT cap? High-earning homeowners in high-tax states. [View all]

Thanks to the new $40,000 cap on deducting state and local taxes, some homeowners may want to start itemizing again.

President Trump’s massive new tax bill has a number of changes affecting homeowners. High earners who live in high-tax states are likely to get the biggest breaks.

The reason? The new law bumps the cap on state and local tax deductions from $10,000 to $40,000. A boosted SALT cap will make it more advantageous for many homeowners — especially those living in high-tax states like New York, New Jersey, and California — to start itemizing their taxes once again. The change could translate to thousands of dollars in annual tax savings for those homeowners, financial planners and tax professionals told Yahoo Finance.

High earners, especially those who own expensive homes and pay hefty property taxes, can easily end up paying more than $10,000 in state and local taxes in some parts of the country. According to Realtor.com calculations, 40% of homes in New Jersey are taxed at over $10,000 a year, followed by 26% in New York and 19% in Connecticut and California.

https://finance.yahoo.com/news/who-stands-to-benefit-from-the-new-salt-cap-high-earning-homeowners-in-high-tax-states-204904190.html