What is the SALT deduction cap?

The State and Local Tax (SALT) deduction cap limits your combined deduction for state income taxes (or sales taxes), and property taxes to $10,000 per year ($5,000 if married filing separately) for tax years 2018 through at least 2025. This cap significantly reduced the itemized deduction benefit for taxpayers in high-tax states like California, New York, and New Jersey, pushing many back to the standard deduction.