Florida's lack of a state income tax draws many taxpayers; however, rising property values and local taxes have increased the burden on residents. The increase in the federal SALT deduction cap from $10,000 to $40,000 drastically reduces the percentage of Florida homeowners exceeding this limit from 5.4% to 0.4%. Communities in South Florida, experiencing rapid home value appreciation, particularly benefit from this change, as many homeowners faced significant property tax bills before. Homeowners with mortgages in these areas will now be able to deduct greater amounts of their local tax payments.
"Residents of high-tax states suffered the most with the previous cap on state and local taxes, because their taxes far exceeded the cap, they were not able to deduct the full amount like residents in low-tax states."
"The early beneficiaries of the new law will be homeowners who have a mortgage and pay significant property taxes. In these fast-growing cities, households with sizable mortgages and rising tax assessments will now be able to deduct more of what they pay locally."
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