2025 Salt Deduction for Big Beautiful Bill
At Daly Investment Management we wanted to take some time and address the SaLT Deduction changes with the 2025 Big Beautiful Bill. We know every client has different goals and risk tolerance and nothing is one size fits all but below are some insights into how Daly Investment understands 2025 SaLT Deductions.
This 2025 Big Beautiful Bill SaLT Deduction is going to change SaLT Deductions for a lot of people. The property tax here in Illinois is one of the highest property tax areas in the country not to mention California and other states. So, the Federal state and local deduction going up from $10,000 to $40,000 is a big change.
2017 SaLT deductions:
- The initial SaLT tax bill passed in 2017, introduced big changes affecting SaLT deductions.
- The 2017 standard deduction amount of $10,000 (led many filers not to itemize and serves as a comparative benchmark against itemizing deductions.)
2025 Big Beautiful Bill SaLT Deductions:
- Increased SaLT Deductions from $10,000 to $40,000
- 1% annual increase rate applies from 2020 through 2029, signaling policy-driven incremental adjustments and providing temporal markers for the cap’s progression.
- Income threshold above which a phase-out of the benefit applies is around $500 million USD, defining the constraint on who can fully utilize the increased SaLT deduction.
Daly Investment Management located in Chicago Illinois is one of the premier Fiduciaries in the Chicago-land area. Whether it’s an initial discussion about how to invest for your financial freedom or how to avoid taxation when moving multi dollar portfolios let’s talk (224) 347-2623, we are happy to leverage our decades of experience to help you towards your retirement and financial goals, no question is too small or too big.