States with the most tax savings
On June 4, 2025, as the temperatures in New York reach the 80s, people enjoy an unusual warm day in New York.
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President Donald Trump’s “Big Beautiful bill” temporarily increased the limit of the federal deduction for the state and local taxes known as Salt to 2025 from $ 10,000 to $ 40,000.
However, some inhabitants of certain states are Larger tax advantageOne Redfin Report It was released last week.
Chen Zhao, President of the Redfin Economic Research, said the results “in line with what you expect” and “there is a great benefit to the inhabitants of certain states,” he said.
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Trump’s 2017 tax deductions increased salt reduction to $ 10,000. Before 2018, salt cuts, including state and local income taxes and real estate taxes, were unlimited. However, the so -called alternative minimum tax has reduced the benefit of some rich landlords.
In order to benefit from salt, you should specify tax cuts instead of demanding the standard deduction. Only during the 2022 tax year 10% of files detailed interruptions and these taxpayers higher earningsAccording to the latest IRS data.
Taxpayers can see the greatest benefit from the $ 40,000 salt cut limit for 2025.
States with the biggest salt savings
Trump’s legislation increased the salt cut limit to $ 40,000 starting from 2025. This benefit begins to gradually remove or reduce consumers who earn more than $ 500,000. Both numbers will increase by 1% per year until 2029 and the higher deduction limit will return to 10,000 dollars in 2030.
However, according to the Redfin report, the products in certain states can see a greater benefit. Here are the 5 states where residents can see the biggest median savings from the new law.
- New York: $ 7,092
- California: $ 3,995
- New Jersey: $ 3,897
- Massachusetts: $ 3,835
- Connecticut: $ 3,133
Meanwhile, these five states are the place where elements will save the smallest media from Trump laws.
- South Dakota: $ 1,033
- Alaska: $ 1,052
- Nevada: $ 1,090
- Tennessee: $ 1,097
- New Hampshire: $ 1.101
To estimate savings, Redfin calculated how much the typically affected landlord could fall under the new salt legislation. Then they applied it 24 % Marginal Tax Ratio holds it according to the previous $ 10,000 salt limit.
However, this is a “very simulation” with many assumptions, including property values, real estate tax forecasts and state income tax forecasts. According to the judicial authority, the report does not take into account local income taxes that may change significantly.
Other precautions of the benefit of salt cut
A separate report published by the two -party policy center in May was also analyzed Which states provide the most benefit Where salt cuts, the number of inhabitants paying salt and the largest salt cuts of taxpayers.
According to the analysis, in 2022, the average salt cut in states such as Connecticut, New York, New Jersey, California and Massachusetts was close to $ 10,000. The lower five were Wyoming, Tennessee, Nevada, North Dakota and South Dakota.
Researchers show that these high averages are a large part of taxpayers claiming that the deduction is approaching a $ 10,000 border.
Meanwhile, the states of salty plaintiffs and the region were Washington, DC, Maryland, California, Utah and Virginia. The lower five were West Virginia, South Dakota, North Dakota, Ohio and Wyoming.
However, the researchers said, “None of these measures are not the perfect proxy for how states benefit from salt outage or how to be affected by the salt cover.”
