Connecticut has long ranked among the states with the highest property tax burdens. Now, the newly passed increase in the federal SALT deduction cap—from $10,000 to $40,000—is poised to deliver long-awaited tax relief to thousands of homeowners.

According to Realtor.com® data, 19.4% of homeowners in Connecticut had property tax bills exceeding the old $10,000 deduction limit. Under the new $40,000 cap, only 1.3% will remain above the threshold—a dramatic drop that could free up funds for residents across the state.

“Residents of high-tax states suffered the most with the previous cap on state and local taxes (SALT),” 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”.