SALT Relief Act

HR 1260, the SALT Relief Act, increases the federal tax deduction limit for state and local taxes (SALT) from $10,000 to $50,000 annually. This change directly affects taxpayers in high-tax states who itemize deductions, allowing them to deduct more of their state income, property, and sales taxes. The bill amends Section 164(b)(6)(B) of the Internal Revenue Code to implement this higher deduction limit. It applies to tax returns filed for taxable years beginning after December 31, 2022.