Your Home, Your Taxes
An Interactive Guide to Recent Real Estate Tax Changes
Recent tax law changes could significantly impact your finances as a homeowner or aspiring buyer. This guide breaks down two key topics—the **SALT Deduction** and **Capital Gains on Home Sales**—to help you understand what they mean for you.
The SALT Deduction Explained
The State and Local Tax (SALT) deduction lets you subtract property taxes and either state income or sales taxes from your federal taxable income. A recent law temporarily changed the rules. Let's see how.
Will You Benefit from the New SALT Cap?
The old $10,000 cap made it hard for many to itemize deductions. The new temporary cap is $40,000. Use this calculator to see if itemizing might now be a better option for you than taking the standard deduction.
Your results will appear here.
The Evolution of the SALT Cap
Pre-2018
Unlimited
No cap on deductions, benefiting many in high-tax states.
2018-2024
$10,000
A strict cap that reduced itemization and increased taxes for many.
2025-2029
$40,000
Temporary relief that restores benefits for middle-income families.
2030+
$10,000
The cap is scheduled to revert, making future planning important.
Capital Gains & The Housing Market
Outdated tax rules on home sale profits can discourage homeowners from selling, "freezing" the market. A new proposal aims to fix this.
The "Stay-Put Penalty" is Growing
Because home values have risen so much, more homeowners face a large tax bill if they sell. This chart shows the projected percentage of single homeowners whose gains would exceed the current $250,000 tax-free limit.
The Problem: Outdated Rules
Current Tax-Free Profit:
$250k / Single
$500k / Married
These limits haven't changed since 1997. This discourages selling, reduces the number of homes for sale, and drives up prices.
The Solution: Modernize the Law
Proposed Tax-Free Profit:
$500k / Single
$1M / Married
This proposal would also adjust the limits for inflation, encouraging homeowners to sell and increasing housing inventory for everyone.