For homeowners facing steep property tax bills alongside high housing costs, the state and local tax deduction (SALT) may offer some federal tax relief in 2026 — especially for those in high-tax states who itemize their deductions.
The SALT deduction is larger than before 2025, and this year's limit gets another increase due to scheduled inflation adjustments. These changes could allow some taxpayers to deduct substantially more of their property and state income taxes than they could under the $10,000 cap that had been in place for years.
