HR 246119th CongressIn Committee

SALT Fairness for Working Families Act

Introduced: Jan 9, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The SALT Fairness for Working Families Act would raise the cap on the federal deduction for state and local taxes (SALT) that individuals can claim when they itemize deductions. Specifically, it would increase the limit from $10,000 ($5,000 for married filing separately) to $15,000, with joint returns allowed to deduct up to $30,000 (twice the $15,000 amount). The change would apply to taxable years beginning after December 31, 2024 (i.e., starting with the 2025 tax year). In short, more of a taxpayer’s SALT payments could be deducted when filing a return, especially for those in high-tax states or with significant SALT bills.

Key Points

1Increases SALT deduction limit: $15,000 for individuals, with joint returns allowed up to $30,000. (Under current law, the limit is $10,000, or $5,000 for married filing separately.)
2Joint returns: the new limit is double the individual amount (i.e., up to $30,000).
3Applies to taxable years beginning after December 31, 2024 (starting with the 2025 tax year).
4Short title: “SALT Fairness for Working Families Act.”
5Sponsors and referral: Introduced in the House by Rep. Underwood (for herself and Rep. Casten); referred to the Committee on Ways and Means. Status in the provided text is “Introduced.”

Impact Areas

Primary group/area affected: Taxpayers who itemize deductions and pay state and local taxes, especially in high-tax states and communities with substantial SALT obligations (e.g., high property taxes, higher state income taxes). These filers would be able to deduct more of their SALT payments, reducing their federal taxable income and potentially their federal tax bill.Secondary group/area affected: Taxpayers who currently benefit from itemizing SALT and those in joint-filing households would see the larger deduction, particularly couples with sizable SALT bills.Additional impacts:- Potentially higher federal revenue losses (i.e., reduced federal tax collections) compared to current law, since more SALT is deductible.- Reduced incentive for taxpayers to shift SALT-related expenses to non-deductible categories; broader tax policy effects could vary by state tax configurations and local tax behavior.

Generated by gpt-5-nano on Nov 18, 2025