Back to today’s briefing

Story perspectives

New Tax Law Boosts Deductions for Middle-Income Families

7/12/2025

45 3

Left

Tax Relief Expansion

The new tax law is set to bring relief to many, raising the SALT deduction cap to $40,000 for 2025, primarily aiding itemizers in high-tax states with incomes under $500,000. While those earning above $600,000 face a $10,000 limit, non-itemizers will enjoy increased standard deductions, creating a more favorable tax landscape for many families.

Center

Trump's Tax Overhaul

President Trump's "One Big Beautiful Bill" promises sweeping tax reforms that will reshape the financial landscape. The SALT deduction limit is set to rise to $40,000, though high earners will see it phased out. Startups can now enjoy earlier exits, while a new gambling provision restricts loss deductions for professional bettors. Seniors will benefit from a deduction aimed at easing taxes on their Social Security benefits.

1 of 2

Tax Relief Expansion

The new tax law is set to bring relief to many, raising the SALT deduction cap to $40,000 for 2025, primarily aiding itemizers in high-tax states with incomes under $500,000. While those earning above $600,000 face a $10,000 limit, non-itemizers will enjoy increased standard deductions, creating a more favorable tax landscape for many families.

1 / 2