Understanding the Changes to the SALT Deduction Under the One Big Beautiful Bill Act (OBBBA)
The State and Local Tax (SALT) deduction has long been an important provision of the U.S. federal tax code. It allows taxpayers who itemize deductions to reduce their federal taxable income by the amount of certain state and local taxes paid, including income, sales, and property taxes. Historically, this deduction was intended to prevent double taxation—that is, taxing the same income at both the federal and state levels.
