How the State and Local Tax Deduction Cap Works in 2026

Episode 84 of The Tax Strategy Podcast breaks down the $10,000 SALT deduction cap, which remains in effect for 2026 after the Tax Cuts and Jobs Act sunset. Lucas and Luna explore strategies for taxpayers in high-tax states like California and New York, including bunching deductions, the workaround of pass-through entity taxes adopted by over 30 states, and the impact on itemizing versus claiming the higher standard deduction. The episode also covers the potential legal challenges and legislative proposals to raise or repeal the cap. By the end, listeners will understand how to minimize their state and local tax burden and whether relocating makes financial sense. #SALT #StateAndLocalTax #TaxCutsAndJobsAct #ItemizedDeductions #HighTaxStates #California #NewYork #PassThroughEntityTax #BunchingDeductions #StandardDeduction #TaxPlanning #PersonalFinance #Finance #TaxStrategy #FexingoBusiness #BusinessPodcast #2026Tax #WealthManagement Keep every episode free: buymeacoffee.com/fexingo