How Much Is the State and Local Property Tax Deduction Worth?

House Republicans are set to unveil their tax plan this week. Retaining a deduction for state and local property taxes promises to change the math.

WASHINGTON — Keeping a federal tax deduction in place for property taxes would erase a sizable chunk of money that would have otherwise been available to help offset tax rate cuts Republican lawmakers and President Trump are pushing for as part of a major tax code rewrite.

House Ways and Means Chairman Kevin Brady, a Texas Republican, has indicated that lawmakers are for now planning to leave the deduction for state and local property taxes intact. His comments come as House Republicans prepare to release a tax bill on Wednesday.

The state and local tax, or SALT, deduction now applies to state and local real estate property taxes, personal property taxes on items like cars and boats, income taxes and sales taxes. It’s seen as a fat target to help offset GOP-backed rate cuts for individuals and businesses.

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ROUTE FIFTY

BILL LUCIA

OCTOBER 30, 2017 07:59 PM ET



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