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A proposal to raise the state and local tax (SALT) deduction cap could see homeowners in New England states reap rewards.

Under current law, homeowners can deduct up to $10,000 in combined state income and property taxes on their federal return but that cap is set to expire. A group of Republican members of Congress are proposing that the SALT cap is raised or even eliminated.

The current proposal would raise the deduction limit from $10,000 to $30,000, but some lawmakers argue that it falls short of providing meaningful relief for their constituents. But an analysis from Realtor.com suggests that Massachusetts and Connecticut can reap the most benefits from a potential change. Massachusetts has the fifth-highest share of properties with tax bills over $10,000 while Connecticut has the third-highest share.

“This deduction could also help some owners move up,” Realtor.com senior economist Joel Berner said in a statement. “By boosting buying power, the expanded deduction could motivate some homeowners to part with their historically low mortgage rates and move into the new home they want or need—freeing up inventory for other hopeful buyers.”

Additionally, Realtor.com analysis found that nearly 40 percent of Americans might be overpaying on property taxes and could save money by appealing their tax assessments.

Mass. Homeowners Could Benefit From Elevated SALT Deduction Caps

by Sam Minton time to read: 1 min
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