SALT Fairness and Marriage Penalty Elimination Act

House Bill

H.R. 232

119th Congress

SALT Fairness and Marriage Penalty Elimination Act

In Committee

Introduced:Jan 7, 2025

Primary Sponsor

Michael Vincent Lawler

Representative

Republican

NY-17

Cosponsors

4

Quick Stats

Policy Area

Taxation

Summary

This bill significantly increases the federal tax deduction cap for state and local taxes. The SALT cap would rise from 10,000 dollars to 100,000 dollars for individuals and from 10,000 dollars to 200,000 dollars for married couples filing jointly. This represents a ten-fold increase from the current limit established in the 2017 Tax Cuts and Jobs Act. The bill particularly benefits taxpayers in high-tax states and eliminates the marriage penalty where couples currently face the same cap as single filers.

Latest Action

Referred to the House Committee on Ways and Means.

AI Summary

Plain-English explanation of this bill

This bill significantly increases the federal tax deduction cap for state and local taxes. The SALT cap would rise from 10,000 dollars to 100,000 dollars for individuals and from 10,000 dollars to 200,000 dollars for married couples filing jointly. This represents a ten-fold increase from the current limit established in the 2017 Tax Cuts and Jobs Act. The bill particularly benefits taxpayers in high-tax states and eliminates the marriage penalty where couples currently face the same cap as single filers.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

SALT Fairness and Marriage Penalty Elimination ActThis bill increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $100,000 ($200,000 for married individuals filing a joint federal income tax return). Under current law, the SALT deduction cap is $10,000 ($5,000 for married individuals filing separate federal income tax returns).

Key Points

Main provisions of the bill

Increases SALT deduction cap to 100,000 dollars for individuals
Raises cap to 200,000 dollars for married couples filing jointly
Ten-fold increase from current 10,000 dollar limit
Eliminates SALT marriage penalty in tax code
Major relief for taxpayers in high-tax states

How This Impacts Americans

Potential effects on citizens and communities

For high-tax state residents: Substantial federal tax relief. For married couples: Elimination of marriage penalty on SALT deduction. For federal revenue: Significant potential reduction from larger deductions. For housing markets: Major support for property values in high-tax areas. For tax policy debates: Near-complete restoration of pre-2017 SALT deduction.

Policy Areas

Primary Policy Area

Taxation

Related Subjects

Income tax deductions

State and local taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

232, 119th Congress (2025). "SALT Fairness and Marriage Penalty Elimination Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-232