SALT Deduction Expansion: Good News for MA Homeowners

SALT Deduction Expansion: Good News for MA Homeowners

A major tax win for Massachusetts! Under the July 2025 reform package, the State and Local Tax (SALT) deduction cap has been raised significantly for many residents.

The Key Changes

• New Limit: For filers with an AGI under $500,000, you can now deduct up to $40,000 in state and local taxes (previously capped at $10,000).
• Property Tax Impact: This is a game-changer for homeowners in high-tax towns like Weston and Newton, effectively lowering the 'net cost' of homeownership.
• Itemization: Remember, you must itemize your deductions to take advantage of this new cap.

Why It Matters

This makes higher-priced suburban homes more affordable on an after-tax basis, likely supporting price stability in the $1M-$3M range.

[[CTA]] Talk to your CPA about how this impacts your 2025 tax return-and then let's find your next home!