Trump raised the SALT deduction limit to $40,000 for 2025 — here’s how to maximize it – CNBC

Key Takeaways:

• The SALT deduction cap is rising from $10,000 to $40,000 for 2025.
• Some taxpayers in places like New York could save nearly $4,000.
• Experts see a potential path to 0% capital gains under the new plan.
• The plan is sometimes referred to as Trump’s “Big Beautiful Bill.”
• Kiplinger and CNBC offer guidance on maximizing this deduction.

The Rise of the SALT Deduction

Trump’s move to increase the State and Local Taxes (SALT) deduction limit from $10,000 to $40,000, starting in 2025, is sparking a wave of analysis. Multiple outlets, including CNBC and Democrat and Chronicle, have reported on what this could mean for taxpayers in higher-tax regions.

Potential Savings for Taxpayers

Experts suggest that this larger SALT cap could translate into substantial relief for residents in high-tax states, notably New York. According to estimates, the raised cap may save some New Yorkers nearly $4,000 by 2026. These cost reductions stem primarily from being able to deduct a greater share of property and local taxes from federal tax obligations.

A ‘Golden Opportunity’ for Capital Gains

Beyond immediate tax write-offs, some professionals highlight new avenues to secure low or even 0% capital gains under what is sometimes called Trump’s “Big Beautiful Bill.” Although specific strategies vary, the underlying point is that taxpayers could discover unique advantages as the rules shift, especially when combining SALT deductions with other tax benefits.

Insights from Experts and Media

Sources like Kiplinger have adopted a Q&A approach, fielding questions on how the new SALT changes might affect itemized deductions. They suggest that if you live in a state or municipality with higher tax rates, you should carefully evaluate your financial strategy before 2025 arrives. CNBC, meanwhile, underscores the broader implications for investors, signaling that certain timing and portfolio decisions could play a pivotal role in capturing the maximum benefits.

Preparing for the 2025 Landscape

As the 2025 deadline for a higher SALT deduction approaches, tax professionals encourage early planning. Whether you’re a homeowner, investor, or simply someone looking to reduce your annual tax burden, keeping a close eye on state and local tax liabilities could be key to unlocking the full potential of the new cap.

Where to Turn for Guidance

Many suggest turning to reliable sources—like tax professionals or trusted financial publications—for detailed advice on making the most of the upcoming change. While the $40,000 SALT limit stands out, it’s just one aspect of the broader adjustments that might arrive around 2025 and 2026.

By staying informed and seeking expert insight, taxpayers may be well positioned to capitalize on these updates, potentially reducing their annual tax obligations and, in some cases, reaping substantial savings.