Salt Tax Deduction Limit 2025 Limit. The 2017 tax cuts and jobs act (tcja) imposed a $10,000 “cap” on state and local tax (salt) deductions on individual federal income tax returns for tax years 2018 through 2025. In 2017, the tax cuts and jobs act (tcja) placed a limit on the total amount that taxpayers can deduct for state and local taxes.
This limit, known as the salt “cap,” applies to. In 2017, the tax cuts and jobs act overhauled federal tax code, capping the salt deduction at $10,000 per year for property taxes plus state income or sales taxes..