President Donald Trump’s “big beautiful bill” raised the limit on the federal deduction for state and local taxes, known as SALT, and there are ways to maximize it for 2025, experts say.
If you itemize tax breaks, you can claim the SALT deduction, which includes state and local income taxes and property taxes. Trump’s 2017 legislation capped SALT at $10,000, which was a pain point for certain residents of high-tax states.
However, there’s now a $40,000 SALT deduction limit for 2025. The cap increases by 1% yearly through 2029, and reverts to $10,000 in 2030.
Those affected can “capitalize on that extra $30,000 SALT deduction” for 2025, according to certified financial planner Jim Guarino, managing director at Baker Newman Noyes in Woburn, Massachusetts. He is also a certified public accountant.
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