"The revamped SALT deduction changes are poised to help long-time homeowners, many of whom are middle-class and have benefited from rapid appreciation in recent years. With the passage of the reconciliation bill, these high-tax state residents will benefit from the higher $40,000 SALT cap, a welcome bit of news for these homeowners."
"New Jersey ranks first among all states in the share of homeowners who currently pay more than $10,000 in annual property taxes-40%, according to Realtor.com's data. That number is expected to drop dramatically under the new cap."
"Under the original $10,000 limit, 2.6% of New Jersey homeowners still exceeded even $30,000 in property taxes. That figure drops to just 1.6% under the new $40,000 cap."
"The new cap levels the playing field between these neighboring high-tax states, as New York, which is next door and also on the high-tax list, had 25.9% of homeowners over the $10,000 threshold."
The Tax Cuts and Jobs Act imposed a $10,000 cap on state and local tax deductions, adversely affecting homeowners in high-tax states such as New Jersey. The new law raises this cap to $40,000, offering relief to thousands of property owners, particularly those with escalating home values. New Jersey has a high percentage of homeowners paying over $10,000 in annual property taxes, a figure expected to reduce significantly. The change enhances the financial situation for many middle-class homeowners who have benefitted from the rapid rise in property values.
Read at SFGATE
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