February 3, 2026
Why this matters:
For many taxpayers, itemizing deductions may once again be worth considering — even if it wasn’t in prior years.
The State and Local Tax (SALT) deduction has long been a pain point for taxpayers in high-tax states. For several years, the deduction was capped at a relatively low amount, limiting the benefit of itemizing for many homeowners and professionals.
For the 2025 tax year, the SALT deduction cap has been temporarily increased for qualifying taxpayers. This change allows certain filers to deduct a larger portion of state income taxes, property taxes, or local taxes — but not everyone will benefit equally.
Who benefits most:
• Homeowners with high property taxes
• Taxpayers in states such as New Jersey, New York, and California
• Filers near the standard-vs-itemized deduction threshold
However, this expanded deduction is subject to income limitations and phaseouts. Higher-income earners may see a reduced benefit or no benefit at all, depending on their filing status and adjusted gross income.
Tax Tip: Always compare itemized deductions to the standard deduction before filing. The better choice can change year to year.
Blaine La/Car Associates 
Leave a comment