Story perspectives

Trump's $40K SALT Cap: Win for the Wealthy?

9/8/2025

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Summary

Story summary

President Trump signed the "One Big Beautiful Bill" (OBBBA) on July 4, 2025, raising the SALT deduction cap to $40,000.
This increase mainly aids high-income earners in high-tax states, while 90% of taxpayers utilize the standard deduction.
The bill may increase the federal deficit by $2.6 trillion by 2035, with estimates reaching $3.8 trillion.
Couples earning $150,000 or less with homes under $600,000 will likely gain no SALT deduction benefits.
The federal estate tax exemption is permanently set at $15 million per person, effective for 2026.

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Story summary

President Trump signed the "One Big Beautiful Bill" (OBBBA) on July 4, 2025, raising the SALT deduction cap to $40,000.
This increase mainly aids high-income earners in high-tax states, while 90% of taxpayers utilize the standard deduction.
The bill may increase the federal deficit by $2.6 trillion by 2035, with estimates reaching $3.8 trillion.
Couples earning $150,000 or less with homes under $600,000 will likely gain no SALT deduction benefits.
The federal estate tax exemption is permanently set at $15 million per person, effective for 2026.