Josh Gottheimer

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Key Figures

The One Big Beautiful Bill Act temporarily raised the state and local tax (SALT) deduction cap from the $10,000 level set by the 2017 Tax Cuts and Jobs Act to $40,000 per household through December 31, 2029. After that date, the cap reverts to $10,000 unless Congress acts again. The higher cap primarily benefits high-income homeowners in high-tax states — California, New York, New Jersey, Illinois — who faced the largest effective tax increases from the 2017 cap. CBO scored the OBBBA's SALT expansion as far more expensive than the House version. The sunset sets up another redistribution fight, as a reversion to $10,000 would be felt most acutely by middle-to-upper-income households in Democratic-leaning states.