2025 SALT Deductions

[Anonymous]

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

You dont live in NY. Someone making 500k is paying almost $50K in income tax and a decent house in Garden City or Rockville Centre for someone that income taxes are $40,000 a year.

When I was making 200K my NY taxes were like 13K a year and my property tax was 14k a year. I was at 27K just there. And I lived in a tiny old split.

The real winners are NYC residents with income between 200k and 500K. On 400K income you could be paying up 50K in NYS/NYC income tax alone

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

As it should

Not necessarily - it still encourages wealthy people to move to Florida or Texas or other no/low tax states.

wealthy people don't want to live in texas or florida.

If someone moves from a livable state to Texas or Florida simply to save a few thousand dollars on taxes they'll get exactly what they deserve.

It's the same as when I see people here saying they're living in VA because of the taxes. Like if you want to live in VA because you want to live in VA go for it, but if you actually prefer to live in DC and you're living somewhere you don't really want to be to save a piddly few percent on taxes that's just sad and pathetic. Hope that long commute from your soulless suburb is really worth the extra few bucks.

Huh? If you make $1M you’re saving a hell of a lot more than a few percent between DC and VA. And your commute is probably shorter if you’re traveling from say Lyon Village or Ashton Heights to downtown DC vs coming from Spring Valley or Kent to downtown DC. VA on $1M you pay $58K. In DC you pay $90-100K. Maybe you haven’t hit that income yet so you don’t understand though?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

Guess where my wife is and has to pay the ridiculous PHL tax on top of state/mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

Note the standard deduction was doubled, but the personal exemptions were removed.
So in 2017, my SD + PEs for my family of 3 was $12,700 + 4050*3 =$24,850. If i itemized, I’d dedcut the personal exemption + the itemized deduction
In 2018, my “doubled” standard deduction was 24,000 and no more personal exemptions.

We are in the 350-400k range so the raised cap will help us.
Mortgage interest is about 12k/year
Property taxes are 15k/year
State taxes are about 20k/year


Last year, I had the 12k + the 10k SALT limit, so I took the standard deduction. This year I’ll be able to deduct more. I don’t know if this is or isn’t the right tax policy, but it should at least have been $10k for single and $20k for married instead of $10k for all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Our income is about $340K. My state tax withholding is over $10k and our total itemized deductions with charitable contributions will exceed the standard deduction for married filing jointly. We’re in Virginia

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

I know plenty of people whose charitable contributions plus the old ten thousand dollar SALT cap made it worth it to itemize.

[Anonymous]

I think we’ll be in the low 300k income range this year and all our deductions even with state and local income taxes + mortgage interest will still put us under the standard deduction of $31k (Virginia).

[Anonymous]

Anonymous wrote:I think we’ll be in the low 300k income range this year and all our deductions even with state and local income taxes + mortgage interest will still put us under the standard deduction of $31k (Virginia).

What I’m taking away from this thread is how tax advantageous VA is compared to MD or DC or the other coastal blue states like NY NJ CT etc. Another PP made similar to this in DC and was well over the standard deduction due to DC tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think we’ll be in the low 300k income range this year and all our deductions even with state and local income taxes + mortgage interest will still put us under the standard deduction of $31k (Virginia).

What I’m taking away from this thread is how tax advantageous VA is compared to MD or DC or the other coastal blue states like NY NJ CT etc. Another PP made similar to this in DC and was well over the standard deduction due to DC tax.

Not having to pay another 3% of my income in local taxes helps a lot.

[Anonymous]

Anonymous wrote:

Anonymous wrote:2 problems moving to FL or TX:

1. You actually have to live there, which for most normal people is barf, and
2. Have you seen real estate taxes?? You get re-assessed both places upon sale and the rates are INSANE. Sure from NY or NJ it makes sense but not really from VA.

FYA FL is likely getting rid of property taxes this legislative session - I’ll believe it when I see it but there’s a big organized push

And than Florida turns into Kansas . . .

Also, you say it is likely to happen, but you will believe it when you see it? Please reconcile those statements.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why is it beneficial to prepay 2026 property taxes? Just trying to understand.

If your state and local taxes (real estate, income taxes, personal property taxes) don’t add up to the limit you can deduct, you can prepay your 2026 taxes to get a bigger deduction. You will have less to deduct next year, though, because it’s cash basis.

That means it is a wash, other than the year before the deduction is set to expire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

Guess where my wife is and has to pay the ridiculous PHL tax on top of state/mortgage.

It's nice that you are very proud of your doctor wife who lives in Philadelphia, but I think the rest of us have heard enough about her.

[Anonymous]

Anonymous wrote:I think we’ll be in the low 300k income range this year and all our deductions even with state and local income taxes + mortgage interest will still put us under the standard deduction of $31k (Virginia).

Give more to charity

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

This. Idk who this is actually helping aside from the narrow $400-500K range who is overextended with their mortgage.

We’re at $700K HHI in VA (and own a house with a $700K mortgage give or take) and don’t get over the threshold where it makes sense to itemize - the standard deduction is still larger for us. Plus SALT phases out starting at $600K anyways back down to $10K.

This doesn’t make sense to me. We also have a $700k-ish mortgage, and even with a sub 4% interest rate, our mortgage interest is ~$18k/year, a few years in. Plus $8k+ in property taxes. Plus 5.75% va income tax (on a $400k salary, this is still $15k+/year). Plus car tax. Plus charitable deductions.

We’re not overextended at all - PITI is about 12% of gross income - but this will reduce our taxes by a bit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if your MAGI is under $500,000. Phases down to $10,000 if MAGI is over $600,000

And if you itemize. I wonder how many people: 1) have state tax deductions over $10k, 2) make under $600k MAGI, and 3) itemize. In many states, if you itemize federal then you have to itemize state too, and if you're only substantial itemized deduction is state taxes, then you'll get no deduction at all at state level (since state taxes are not deductible on state taxes). That seems like a pretty small universe.

Odds are you're itemizing if you're paying mortgage interest, no? Between SALT and interest, that's enough to get us over the standard deduction even before we take charitable donations into account. Especially now that the SALT cap is significantly higher than the standard deduction amount.

Before the SALT cap was introduced in 2017, 80% of households making between $100-500K were itemizing. After the cap was set at 10K only 22.5% itemized. Raising the cap again is going make a huge difference, especially in this area.

The standard deduction was also doubled in 2018, so that definitely had an impact. A lot more people in HCOL areas will itemize now, people in LCOL places will still have a hard time hitting $30K+ in itemized deductions.

Yep. The standard deduction for a couple is $31,500 this year. Even with state taxes, it will be hard for most people to get over that in itemized deductions even with the increased limits. I’d imagine this will only really help folks in the $400-$500k range.

This. Idk who this is actually helping aside from the narrow $400-500K range who is overextended with their mortgage.

We’re at $700K HHI in VA (and own a house with a $700K mortgage give or take) and don’t get over the threshold where it makes sense to itemize - the standard deduction is still larger for us. Plus SALT phases out starting at $600K anyways back down to $10K.

This doesn’t make sense to me. We also have a $700k-ish mortgage, and even with a sub 4% interest rate, our mortgage interest is ~$18k/year, a few years in. Plus $8k+ in property taxes. Plus 5.75% va income tax (on a $400k salary, this is still $15k+/year). Plus car tax. Plus charitable deductions.

We’re not overextended at all - PITI is about 12% of gross income - but this will reduce our taxes by a bit.

PP here. I was wrong about the overextended bit. That was my perception and I’ve been proven wrong with multiple examples.