A recent federal tax change is bringing big benefits for homeowners—especially in high-tax states. Starting in 2025, the cap on state and local tax (SALT) deductions will increase from $10,000 to $40,000, thanks to new legislation explained in the latest Consumer Guide from the National Association of Realtors® (NAR).
This temporary increase could significantly reduce tax liability for many homeowners, making homeownership more financially attractive. The deduction will rise gradually through 2029 before reverting back to $10,000—unless Congress extends the policy. Note: a phasedown applies to those with modified adjusted gross incomes over $500,000.
The guide also confirms that mortgage interest deductibility remains unchanged under the Tax Cuts and Jobs Act (TCJA) of 2017.
NAR has long advocated for policies that support affordable homeownership, citing its strong links to improved education, health, and community engagement.
Homeowners can access NAR’s Consumer Guides—available in English and Spanish—for more insights on maximizing the SALT deduction and other key real estate tax benefits.
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