While Washington state is known for skipping the income tax, its rising home values have made property taxes an increasingly weighty line item for many homeowners. Now, with the federal SALT (state and local tax) deduction cap raised from $10,000 to $40,000, residents in high-cost areas like Seattle are poised to see some long-overdue tax relief.

According to Realtor.com® economists, 9.4% of Washington homeowners exceeded the previous $10,000 SALT deduction cap. With the new $40,000 ceiling, only 0.8% are projected to remain above the limit—a sharp drop that highlights how many homeowners will benefit from the updated rule.

“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”.