How the SALT Deduction Cap Impacts High-Tax States in 2026

In 2026, the state and local tax (SALT) deduction remains capped at $10,000 for single and joint filers, a provision first introduced under the Tax Cuts and Jobs Act and extended by subsequent legislation. This episode breaks down the mechanics of the SALT cap, its disproportionate impact on residents of high-tax states like California, New York, New Jersey, and Illinois, and the strategies tax professionals use to mitigate the pinch. Lucas and Luna explore the $10,000 threshold, discuss the concept of 'workarounds' such as passthrough entity-level taxes (PTETs) adopted by a dozen states, and examine legislative efforts to raise or repeal the cap. They also cover the interaction with the alternative minimum tax, charitable contribution strategies, and timing considerations for property tax payments. This is a focused look at one of the most controversial elements of the modern tax code and what it means for your 2026 filing. #SALT #TaxCutsAndJobsAct #StateAndLocalTax #HighTaxStates #California #NewYork #NewJersey #Illinois #PTET #PropertyTax #AlternativeMinimumTax #TaxDeduction #TaxPlanning #2026Taxes #Finance #TaxStrategy #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo