The recent change in the SALT deduction cap from $10,000 to $40,000 provides substantial financial relief for New York homeowners. Previously, many taxpayers faced federal tax bills that did not accurately reflect their high property taxes. The updated cap allows nearly three-quarters of New York homeowners to benefit from expanded deductions. New York ranks high in homeowners affected by these limits. Data indicates substantial differences in taxation amounts between the old and new caps, particularly in urban areas like New York City, where almost half of homeowners previously exceeded the old cap.
"This legislative win underscores the standing homeowners hold in advocating for policy change," says Shannon McGahn, chief advocacy officer at the National Association of Realtors. She adds that 61% of voters support lifting the SALT cap, according to an NAR-commissioned poll.
"Residents of high-tax states suffered the most with the previous cap on state and local taxes (SALT)," says Colin Allen, executive director of the American Property Owners Alliance. "Because their taxes far exceeded the cap, they were not able to deduct the full amount like residents in low-tax states."
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