If you live in a high-tax state, this one’s for you: the One Big Beautiful Bill temporarily raises the SALT deduction cap from $10,000 to $40,000—through 2029. That’s a huge benefit if you pay a lot in state and local taxes.

Here’s what it means—and how to make it work for you:

What Just Changed

Under previous rules, taxpayers were limited to deducting $10K in total SALT (state income tax + property tax). The updated cap pushes that to $40K! That means more of your money goes back in your pocket—if you take smart steps to claim it.

Be Strategic About Prepayments

Now is a great year to consider accelerating payments toward deductible expenses. If you expect big property or state tax bills and you have room under the $40K cap, prepaid deductions might reduce this year’s tax liability. But make sure it aligns with your overall financial game plan.

Compare Itemizing vs Deduction Snapshots

Higher SALT limits mean more filers may jump back into itemizing. If your total deductions, including SALT, mortgage interest, and charitable gifts, are over the standard deduction—itemizing could be back in your advantage zone.

Plan Now, Reevaluate Later

This benefit is only temporary—though it stretches out a few more years. Track your SALT payments carefully, revisit your tax returns, and stay ready for the eventual phase-out.

What You Can Do Today

1. Estimate your 2025 SALT liabilities by year-end (property, state, local taxes).

2. See if you should prepay any taxes to exceed the $40K threshold efficiently.

3. Decide if itemizing makes sense—don’t assume standard deduction is always best.

4. Check your long-term tax profile and how this change affects your goals through 2029.

Need help running those calculations or setting up a prepayment schedule? I’m here to help.