Connecticut homeowners will benefit from the increase in the SALT deduction cap from $10,000 to $40,000, alleviating high property tax burdens. Previously, 19.4% faced property tax bills over the old limit, but now only 1.3% will exceed the new threshold. Cities like Bridgeport, where 39.3% of homeowners paid over $10,000, are significantly affected. Homeowners with mortgages will receive the most financial relief, benefiting from both the higher SALT deduction and mortgage interest deductions, potentially influencing real estate behavior in the state.
"Residents of high-tax states suffered the most with the previous cap on state and local taxes (SALT), because their taxes far exceeded the cap, they were not able to deduct the full amount like residents in low-tax states."
"The early beneficiaries of the new law will be homeowners who have a mortgage and pay significant property taxes, since they can also benefit from mortgage interest deductions in addition to the higher SALT cap."
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