Texas may not have a state income tax, but it does hit homeowners hard with property taxes. And with the federal SALT (state and local tax) deduction cap now raised from $10,000 to $40,000, even this income-tax-free state stands to benefit.

“Residents of high-tax states suffered the most with the previous cap on state and local taxes,” says Colin Allen, executive director of the American Property Owners Alliance. “Because their taxes far exceeded the cap, they were not able to deduct the full amount like residents in low-tax states”.

Still, 13.4% of all Texas homeowners currently exceed the $10,000 deduction cap due to property tax bills alone. That share will shrink dramatically under the new threshold, with only 1.2% of homes projected to surpass the $40,000 mark, according to Realtor.com® economists. And when you look at one of the most popular cities in the state, the benefits are even higher.