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0 pointsdpweb4y ago0 comments

Not so much. Average house in Illinois about 350k. At that you pay about 10k property tax. Salt limit reached.

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lotsofpulp4y ago· 2 in thread

You have to forego the standard deduction if you want to itemize And take advantage of SALT deductions. Which means you have to owe more federal income tax than $12.5k for single filers and $25.1k for married filers.

This link goes into more detail:

https://www.pgpf.org/blog/2021/07/what-is-the-salt-cap-and-w...

gnicholas4y ago

Yeah, but that was just the property tax — the SALT cap applies to the total state and local taxes.

Tack on the 5% income tax rate, and you'll hit the cap pretty easily. For example, a single person making any amount (with that property tax amount) will hit the cap. Ditto for a couple each making $145k.

lotsofpulp4y ago

And they still have $10k of SALT to deduct. The more you increase the cap, the more it benefits richer people (on a nationwide perspective).

There are a handful of states with extremely high taxes (IL/NJ/CT/CA/NY/MD/etc), but they are solidly Democrat. I do not envision the other Democrat states who would not benefit from SALT cap increases to care about going out on a limb for them.

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