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SALT (State and Local Tax) Definition

April 23, 2021

What Is SALT (State and Local Tax)?

The acronym “SALT” stands for state and local tax and generally is associated with the federal income tax deduction for state and local taxes available to taxpayers who itemize their deductions.1 In 2017, a $10,000 ceiling on the previously unlimited SALT deduction was enacted and made applicable for tax years beginning in 2018 and continuing through 2025.2 The limitation on the deduction has prompted continuing political debate, with high-income individuals and officials in states with high taxes leading intense opposition.

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