And dated July 4, nothing in this statement is changed by the BBB.
That's all well and good, but stop saying 'no tax on SSI. That is a lie. SSI is still taxed. For me, I still pay tax on my SS payments. I get no benefit from this bill.
Lots of people start pulling social security at age 62. According to bankrate.com, it's 27.3%. They get no increased deduction until age 65.
I guess I'm just glad we're getting some kind of a decrease instead of an increase the last administration wanted.
| State Group | Benefit from Big SALT Cap? |
|---|---|
| High-tax (NY, NJ... ) | Very big benefits – more households now itemize and deduct up to $40K. |
| Medium-tax (CO, AZ...) | Moderate benefit – occasionally above $10K; some legal cleanup needed. |
| Low-tax (FL, TX...) |  Minimal effect – most already deduct less than $10K. |
| Mixed/Red states |  Mixed/negative effect – some offset by other factors like indirect tax hikes. |
One Big Beautiful Bill (also called the “Big Beautiful Bill”) in California, taxpayers would be able to deduct up to $40,000 in state and local taxes (SALT), including property taxes, on federal returns for the 2025 tax year
Key Details of the SALT Provision
- SALT deduction cap raised to $40,000
- The maximum deductible amount for SALT (state/local income + property taxes) increases from the current $10,000 to $40,000 per household in the 2025 tax yearwashingtonpost.com+15wsj.com+15ainvest.com+15news.bloomberglaw.com.
- Income phase-out threshold at $500,000
- Full $40,000 deduction applies if your modified adjusted gross income (MAGI) is $500,000 or below.
- If MAGI exceeds that, the deduction phases out (gradually reduces), but won’t fall below $10,000news.bloomberglaw.com+15wsj.com+15cnbc.com+15smartasset.comcnbc.com.
- Annual adjustment by 1% through 2029
- Both the cap and the income threshold will rise by roughly 1% per year from 2026–2029cbsnews.com+6smartasset.com+6cnbc.com+6cbsnews.com+1cbsnews.com+1.
- Sunset back to $10,000 cap in 2030
- Unless extended, beginning tax year 2030, SALT cap reverts to $10,000news.bloomberglaw.com+15cnbc.com+15wsj.com+15.
- Only for itemizers
- You must itemize deductions (rather than take the standard deduction) to use this. The standard deduction is $30,000 for married couples, $15,000 for singles in 2025 smartasset.com+9cnbc.com+9wsj.com+9.
High‑Tax States (NY, NJ, CT, MA, MD, DC, IL, WA)
- Big winners: Residents often hit the old $10K cap. With the new $40K limit, many can now deduct up to $30K more on federal returns—provided they itemize and have MAGI ≤ $500Ksfchronicle.com+15wsj.com+15myjournalcourier.com+15washingtonpost.com+2cnbc.com+2cnbc.com+2.
- Homeowners in pricey metros like New York–NJ, Boston, Hartford stand to see major savingsnowbam.com+1wsj.com+1.
- However, pass-through entity tax (PTET) workarounds—previously used by professionals—are being clawed back, reducing one SALT workaround benefitnews.bloomberglaw.com+4proskauer.com+4proskauertaxtalks.com+4.
Medium‑Tax States (CO, VA, AZ, NM, UT)
- Some taxpayers here occasionally reached the old SALT cap. Now more households can benefit—but the impact is smaller compared to high‑tax states san.com+6wsj.com+6nowbam.com+6.
- Standard deduction conformity varies: states like Colorado, Arizona, South Carolina, etc., must update laws to fully align with the federal changes .
Low‑Tax States (TX, FL, TN, etc.)
- Most taxpayers don’t exceed the $10K SALT threshold. So the new cap change makes little or no impact here.
Mixed‑Effect States
- Missouri, Iowa, etc.: Some middle-income households actually lose when other offsets kick in, such as tariff increases or Medicaid/SNAP cuts tied to the bill kiplinger.com.
Summary by State Tier
State Group Benefit from Big SALT Cap? High-tax (NY, NJ... ) Very big benefits – more households now itemize and deduct up to $40K. Medium-tax (CO, AZ...) Moderate benefit – occasionally above $10K; some legal cleanup needed. Low-tax (FL, TX...) Mixed/Red states
What to Watch
- MAGI phase‑out: Full SALT deduction available up to $500K; higher incomes see a gradual decreasetime.com+15wsj.com+15wsj.com+15kiplinger.com+8reddit.com+8eidebailly.com+8cnbc.comwsj.com+4cnbc.com+4cnbc.com+4.
- PTET changes: Many states are reevaluating SALT workarounds—especially for service-industry partnershipscnbc.com+5proskauer.com+5proskauertaxtalks.com+5.
- Federal vs. state conformity: "Decoupling" from federal rules could leave some state deductions unchanged or unclaimed .
Bottom Line (Outside CA)
- High‑tax state residents = substantial federal benefit (up to $30K more deduction).
- Medium‑tax state residents = some benefit, more limited.
- Low‑tax state residents = little/no change.
- Policy and tax guidance may lag—especially in states slower to conform to federal updates.
I would not worry to much about it.
It is hard to trust Anything that comes from our Gov't these days...
