High-income residents of Democratic-leaning states are on track for substantial refunds early next year, aided by a temporary expansion of the state and local tax (SALT) deduction.
President Donald Trump's "big, beautiful bill" raised the SALT cap to $40,000 from $10,000 starting with tax year 2025, though, as noted in a report by The Wall Street Journal, the benefit depends on income, tax burden and whether itemizing beats the standard deduction.
