Salt Tax Deduction 2025 California State. Previously, you could deduct all state and local taxes from your federal bill. California would extend its elective tax that helps some people get around the $10,000 federal cap on individuals’ state and local tax deductions if congress renews the cap.


Salt Tax Deduction 2025 California State

Repealing the salt cap in 2021 would reduce federal income tax liability by approximately $91 billion, or 7.2 percent. There is now a $10,000 cap on the deduction for state and local taxes that may be claimed on your federal tax return.

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