SALT Deduction Cap Rises to $40,000 for Itemizers
Massachusetts residents preparing to file their 2025 tax returns should take note of recent changes in federal tax law that could materially affect their deductions, Secretary of the Commonwealth William F. Galvin said.
“Many taxpayers may not realize that their property tax, auto excise tax, and state income tax can all be deducted, subject to the $40,000 cap and certain income limits,” Galvin said. “Now is the time, at the beginning of the New Year, to consider your options and perhaps consult with a tax professional, to decide whether you should itemize your deductions to take advantage of this tax break.”
Under a tax reform package signed into law in July, certain taxpayers will now be able to deduct up to $40,000 in state and local tax (SALT) payments—but only if they itemize their deductions.
In prior years, the SALT deduction was capped at $10,000. The higher cap, Galvin said, is most likely to benefit Massachusetts homeowners with significant property tax bills and residents with high state income tax payments.
What Changed
- Old cap: $10,000 SALT deduction limit in previous years
- New cap: Up to $40,000 in SALT payments may be deductible
- Key condition: The deduction is available only to taxpayers who itemize
- Limits apply: The change is subject to “certain income limits,” according to Galvin
Timing and Suggested Next Steps
Galvin urged residents to evaluate their approach early in the year—before filing—particularly to determine whether itemizing deductions may be advantageous under the new framework.
- When: “At the beginning of the New Year,” as residents prepare 2025 returns
- How: Consider options and consult with a tax professional to decide whether to itemize and potentially take advantage of the increased cap
Registry of Deeds Resources for Property Owners
As the official who oversees most registries of deeds in Massachusetts, Galvin said his office frequently provides information relevant to property owners, including:
- Refinancing
- Tax abatements
- Homestead protections
More information is available through Galvin’s registry of deeds resources on his website at www.sec.state.ma.us/rod.
