# SALT Marriage Penalty Elimination Act

Right now, when you file your taxes, you can deduct state and local taxes (often called SALT) that you've paid during the year. However, there's a cap on how much you can deduct: married couples filing jointly can only deduct up to $10,000 in state and local taxes. This bill would temporarily increase that cap to $20,000 for married couples whose household income is below $500,000, but only for tax years 2023 and 2024.

The bill targets what supporters call a "marriage penalty"—the idea that married couples filing jointly hit the $10,000 cap more easily than single filers, who can each deduct up to $10,000 individually. For example, if you're married and live in a high-tax state like New York or California, you might pay $15,000 in state and local taxes combined. Currently, you can only deduct $10,000 of that, leaving $5,000 undeducted. Under this bill, you could deduct the full $20,000 (or your actual taxes paid, whichever is less) for those two years.

This would primarily benefit married couples in high-tax states who earn less than $500,000 annually. The benefit would be temporary, expiring after 2024, unless Congress extends it. The bill essentially gives these couples a tax break by allowing them to deduct more of what they pay in state and local taxes, which reduces their federal tax bill.

SALT Marriage Penalty Elimination Act

Lawler, Michael

SALT Marriage Penalty Elimination Act This bill increases from $10,000 to $20,000 the maximum amount of the tax deduction for state and local taxes for married couples whose adjusted gross income is less than $500,000 in 2023, thus eliminating the tax effect known as the marriage penalty.