For many Massachusetts homeowners, the $10,000 cap on state and local tax (SALT) deductions imposed in 2017 became a recurring financial hurdle. But the new $40,000 cap passed by Congress marks a turning point—one that could bring meaningful tax relief to thousands across the state.

With 18.4% of Massachusetts homeowners previously exceeding the $10,000 threshold, the shift will dramatically reduce the number affected. Under the expanded cap, only 1.0% of residents are expected to remain above the deduction limit.

“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”.