2025 SALT Deductions

[Anonymous]

Anonymous wrote:

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.

Kansas has property taxes and is a better state than FL

[Anonymous]

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

Why should it? When you make more money, you pay more on taxes, both on a net basis and thanks to a higher rate with our progressive tax brackets. Why should the people who pay the most on taxes be unable to utilize the deductions and credits available to people paying much less in taxes? It’s patently unfair.

[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.

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.

They were direct responses to questions in the thread. Since it's anon, I had to give the info of the particular case where it applies. You could have just kept reading instead of being a ****

[Anonymous]

We will definitely not have enough to exceed the $31k standard deduction requirement. I’ll be curious to see where we end up this year.

[Anonymous]

New thought: for those of us over 50 with catch-up TSP contributions, if those start going to Roth in 2026, will that increase our taxable income, potentially impacting the SALT/tax analysis?

[Anonymous]

Anonymous wrote:New thought: for those of us over 50 with catch-up TSP contributions, if those start going to Roth in 2026, will that increase our taxable income, potentially impacting the SALT/tax analysis?

Yes

[Anonymous]

We are close to 700k HHi with high property and state taxes

Will I pay more in taxes next year?

[Anonymous]

Anonymous wrote:We are close to 700k HHi with high property and state taxes

Will I pay more in taxes next year?

yes, send me a check to 7600 Wisconsin Ave NW, Washington, DC. i will make sure your taxes are paid

[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

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?

The difference between $90k and $58K is $32K, which is about 3% of $1,000,000. The number 3 is generally regarded as well within the normal usage of "a few." But maybe you haven't hit elementary school math yet so you don't understand though?

[Anonymous]

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

Why “as it should”? Why should I be punished for my financial acumen and success?

[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

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.

Based on typical late‑2025 inventory patterns:

- Washington DC metro: a few dozen homes for sale with asking prices above $5 million (concentrated in Northwest DC, close‑in Montgomery County, and Northern Virginia).

- Florida statewide: low hundreds of homes for sale above $10 million (concentrated in Palm Beach County, Miami‑Dade, Broward, Collier/Naples, and the Keys). Large public portals list many ultra‑luxury properties but don’t provide a precise statewide count in one view.

are you really comparing the entire state of Florida and its coastline with one metropolitan region with its own specific (government) industry? People from NY, Boston, and abroad also have been choosing to retire in Florida for the last 70 years now. Damn, MAGA is truly bad at reasoning

Are you one of those posters who ruin every thread by shouting MAGA at every topic? It is tiresome and delusional.

Florida has long been a popular destination for the very wealthy. A combination of tax friendly governments and lifestyle options makes Florida attractive, especially when factoring in the generous state residency policies. There is wealth in Florida and Miami that you don't see around DC for the most part.

Texas also has a high concentration of very wealthy people due to the state's energy and business markets. Austin, Dallas and Houston all have their large quotas of billionaires and you will find high end properties to match. There's a level of architecture and new construction of very high end properties in Texas that is almost nonexistent in the DMV. There's a lot of wealth in both Florida and Texas, more than in most states when you get down to it. You can shout MAGA as often as you want but this is a pattern that long predated Trump by decades.

Well since DCUM posts are overwhelmingly liberal (it’s like 99% liberal) I can’t say I blame MAGA folks for shouting. DCUM is a liberal echo chamber for the most part.

[Anonymous]

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

Why “as it should”? Why should I be punished for my financial acumen and success?

You aren’t being “punished.” Change your framing.

[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

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.

Based on typical late‑2025 inventory patterns:

- Washington DC metro: a few dozen homes for sale with asking prices above $5 million (concentrated in Northwest DC, close‑in Montgomery County, and Northern Virginia).

- Florida statewide: low hundreds of homes for sale above $10 million (concentrated in Palm Beach County, Miami‑Dade, Broward, Collier/Naples, and the Keys). Large public portals list many ultra‑luxury properties but don’t provide a precise statewide count in one view.

are you really comparing the entire state of Florida and its coastline with one metropolitan region with its own specific (government) industry? People from NY, Boston, and abroad also have been choosing to retire in Florida for the last 70 years now. Damn, MAGA is truly bad at reasoning

Are you one of those posters who ruin every thread by shouting MAGA at every topic? It is tiresome and delusional.

Florida has long been a popular destination for the very wealthy. A combination of tax friendly governments and lifestyle options makes Florida attractive, especially when factoring in the generous state residency policies. There is wealth in Florida and Miami that you don't see around DC for the most part.

Texas also has a high concentration of very wealthy people due to the state's energy and business markets. Austin, Dallas and Houston all have their large quotas of billionaires and you will find high end properties to match. There's a level of architecture and new construction of very high end properties in Texas that is almost nonexistent in the DMV. There's a lot of wealth in both Florida and Texas, more than in most states when you get down to it. You can shout MAGA as often as you want but this is a pattern that long predated Trump by decades.

Well since DCUM posts are overwhelmingly liberal (it’s like 99% liberal) I can’t say I blame MAGA folks for shouting. DCUM is a liberal echo chamber for the most part.

Income taxes were a lot higher in the eras that MAGA seems to yearn for.

[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

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?

The difference between $90k and $58K is $32K, which is about 3% of $1,000,000. The number 3 is generally regarded as well within the normal usage of "a few." But maybe you haven't hit elementary school math yet so you don't understand though?

That's a nice gift or a trip. All that for the prestige of living in a place like DC?

[Anonymous]

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

Why “as it should”? Why should I be punished for my financial acumen and success?

You still have more on net.