The expanded state and local tax deduction may be associated with high-tax states such as New York, New Jersey and California, but its benefits are reaching taxpayers across a much broader portion of the country.
Emily Shacklett, Senior Wealth Advisor at Hightower Signature Wealth, recently spoke with Caitlin Reilly of Bloomberg Tax about how the higher SALT deduction is affecting clients in states including Ohio, Colorado, North Carolina, Michigan and Pennsylvania.
A Broader Benefit Than Expected
“I saw benefits for clients in many states outside of the usual suspects,” Emily shared.
The SALT deduction cap increased from $10,000 to $40,400 for 2026, creating new opportunities for some taxpayers who had previously taken the standard deduction. According to the article, rising home values and the resulting property tax bills have helped expand the potential value of the deduction beyond traditionally high-tax areas.
How the Numbers are Adding Up
Emily noted that several of her clients in lower-tax states were already close to the point where itemizing would be more beneficial than taking the standard deduction. With the higher SALT cap, some crossed that threshold and experienced meaningful tax savings.
She shared examples of a couple in Georgia who saved approximately $6,500 and a single filer in Ohio who saved just over $6,000 through the combined impact of state, municipal and property taxes, charitable contributions and mortgage interest.
Why it May Be Time to Revisit Itemizing
The expanded deduction is temporary and begins phasing down for households with more than $505,000 in annual income. However, for eligible taxpayers, Emily’s experience demonstrates why it may be worth taking a fresh look at whether itemizing makes sense.
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