Sources & currency
How the Proposed One Big Beautiful Bill Act Could Save You Money
Proposed temporary SALT deduction increase from $10,000 to $40,000 (2025-2029)
California
Potential up to $10,500 annual federal tax savings
New York
Potential highest benefit in high-tax counties
Texas
Potential property tax deduction benefits
SALT Benefit Calculator
Rental Property Owners: Get Your Tax Refund
Most Texas rental properties are over-assessed. Get a free analysis and recover overpaid taxes. No cost unless you get a refund.
Texas Property Owners: Property Tax Only Benefits
High-Value Property Counties
- Austin-Round Rock: high values push many bills past $10,000
- Houston (Harris County): Growing number exceeding cap
- Dallas-Fort Worth: Rapid appreciation pushing taxes up
- Statewide: it only helps if you itemize at all
Texas Calculation Example
$750,000 home in Travis County (Austin)
- • Property tax rate: 1.65%
- • Annual property tax: $12,375
- • Old SALT deduction: $10,000
- • New SALT deduction: $12,375
- • Additional deduction: $2,375
Estimated federal tax savings: $760/year (32% bracket)
OBBBA SALT Deduction Timeline
Proposed OBBBA would take effect - 4x increase from $10,000
1% annual increase begins
Continued 1% growth
Near peak benefit year
Final year of expanded deduction
Reverts to original cap without new legislation
OBBBA Frequently Asked Questions
Do I automatically get the $40,000 SALT deduction?
No, you must itemize deductions on your federal tax return. If your total itemized deductions (including SALT) don't exceed the standard deduction ($30,000 for married couples in 2025), you won't benefit from the increased SALT cap.
How does the income phase-out work?
If your modified adjusted gross income exceeds $500,000, your SALT cap is reduced by 30% of the amount over $500,000. At $600,000 income, you're back to the $10,000 cap.
Which taxes count toward the SALT deduction?
State and local income taxes, property taxes, and either sales taxes OR income taxes (not both). For Texas residents, only property taxes and sales taxes are applicable since there's no state income tax.
Should I prepay property taxes to maximize the deduction?
Consult a tax professional. The IRS has rules against prepaying future years' taxes, but paying current year taxes in December vs. January can affect which tax year gets the deduction.
What happens after 2029?
Unless Congress passes new legislation, the SALT cap reverts to $10,000 in 2030. Plan accordingly for potential tax increases.
Calculate Your Property Tax Savings
Use our free calculator to see how OBBBA affects your specific situation
Calculate Texas Property Taxes