OB3 Act: State and Local Tax Deductions
The Tax Cuts and Jobs Act (TCJA) significantly limited the ability of individuals to deduct state and local taxes (SALT) to $10,000 (or $5,000 if married filing separately (MFS)). Under TCJA, the SALT deduction cap would have disappeared entirely for tax year 2026, significantly decreasing federal tax revenue. https://www.tomtalkstaxes.com/p/ob3-act-state-and-local-tax-deductions (July 7, 2025)