09 Oct Can I benefit from the higher SALT deduction?

Q. I know the SALT deduction was increased. My property tax is $19,000, but I don’t really have other deductions. Will I not be able to benefit from this?
— Homeowner

A. This is a great question.

Lots of people in New Jersey are excited about the higher SALT deduction, but not everyone will be able to take advantage of it.

The SALT deduction cap was raised from $10,000 to $40,000 with the new tax law, said Joseph Sarnecki, a certified financial planner with U.S. Financial Services in Fairfield.

This increase benefits high-tax states — such as New Jersey — as it allows for a greater deduction of state and local taxes, including property tax, he said.

The change comes with eligibility requirements and is subject to an income-based phase-out, Sarnecki said.

“In order to qualify for the increase, one must have Adjusted Gross Income under $500,000,” he said. “For taxpayers with AGIs over $500,000, the SALT cap is reduced by 30% of the amount they exceed the threshold, although the cap will never drop below $10,000.”

In order to take advantage of the SALT deduction, you must itemize your deductions, he said.

“For the tax year 2025, the standard deduction amounts are $15,000 for single filers and $30,000 for married couples filing jointly, while itemized deductions allow taxpayers to deduct specific expenses that exceed the standard deduction,” he said.

When deciding between the standard deduction and itemizing deductions, taxpayers should consider their total potential itemized deductions, which can include SALT as well as items such as charitable contributions and mortgage interest, he said.

“If these total itemized deductions exceed the standard deduction for their filing status, it may be more beneficial to itemize,” he said. “Conversely, if the total itemized deductions are less than the standard deduction, it may be more advantageous to take the standard deduction, in which case, SALT would not be a factor.”

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This story was originally published in October 2025.

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