Few states have more riding on the future of the SALT deduction than New York . With some of the highest property taxes in the country and a high-income tax rate layered on top, New York residents are disproportionately affected by the current $10,000 cap on state and local tax deductions.
The numbers speak for themselves: roughly 1 in 4 properties in New York have property tax bills that exceed the $10,000 limit—meaning those homeowners are already maxing out the deduction. The impact is even more dramatic in and around the New York City metro area, which includes parts of northern New Jersey . Nearly half of homeowners in this region face property tax bills above the $10,000 threshold, making them some of the hardest-hit in the nation under the current SALT cap.
As Rep. Nick LaLota and others have argued, any meaningful federal tax reform must acknowledge the real burden facing homeowners in states like New York, where five-figure tax bills are the norm, not the exception. To address that, he proposed raising the deduction to $62,000 for single filers and $124,000 for joint filers.
Property taxes have been something of an albatross around the neck of homeowners. After the equity boom following the COVID-19 pandemic pushed home prices (and tax assessments) to new heights, homeowners have been left footing the bill for higher taxes .
Many state and local governments have responded by passing exemptions that lower the taxable value of homes, particularly for seniors and longtime residents who have owned their homes for decades or more. But there hasn't been the kind of national relief that could provide a meaningful resolution for U.S. homeowners now sitting on (and paying taxes on) $35 trillion of residential real estate wealth.
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