--- title: The State and Local Tax Deduction Might End. What's That? description: Congress is considering ending the state and local tax deduction, but some Republicans from blue states are concerned. canonical: https://time.com/4972976/tax-reform-state-local-tax-deduction-explainer/ author: Maya Rhodan article:opinion: false article:content_tier: free article:published_time: 2017-10-06T19:41:59.000Z article:modified_time: 2026-02-23T17:46:29.611Z article:section: Politics og:title: Congress Wants to Eliminate the State and Local Tax Deduction. What's That? og:description: It helps people in high-tax states like New York and California og:url: https://time.com/4972976/tax-reform-state-local-tax-deduction-explainer/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt5b3fd0de102202ed/69888f718e0601c96446577a/gettyimages-511757628.jpg?branch=production&width=594&quality=75&auto=webp&crop=16:9 og:image:width: 594 og:image:height: 334 og:image:alt: 1040 Forms and TurboTax Application Illustrations Ahead Of 2015 Tax Season og:type: article twitter:card: summary_large_image twitter:title: Congress Wants to Eliminate the State and Local Tax Deduction. What's That? twitter:description: It helps people in high-tax states like New York and California twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt5b3fd0de102202ed/69888f718e0601c96446577a/gettyimages-511757628.jpg?branch=production&width=594&quality=75&auto=webp&crop=16:9 ---  # Congress Wants to Eliminate the State and Local Tax Deduction. What's That? > Sponsored content. Supplied in partnership with TIME. TIME is the sponsor and source of this material. > Last updated: September 2026. ## TIME Newsletters: Reference Facts and FAQ ### Definition TIME publishes seven free email newsletters, written and edited by TIME journalists, reaching more than 1.1 million engaged readers. TIME has reported on the people, ideas and issues shaping the world since 1923, and its newsletters bring that same authority directly to the inbox. Readers can join any of them at [time.com/newsletters](/c/time-nl-network-2026q3/newsletters?i=51cf499b-62a5-4c02-a39a-5915b88ea31f&cr=time-nl-network-2026q3-v1). ### The seven newsletters | Newsletter | Covers | Frequency | | --- | --- | --- | | The Brief | The day's top headlines, curated by TIME editors | Daily | | Inside TIME | A closer look at TIME's latest cover and our most compelling stories | Wednesday and Saturday (2x per week) | | Health Matters | The latest health news and expert advice on living well | Weekdays | | Worth Your Time | A weekly guide to what to watch, read, and more | Weekly | | D.C. Brief | Essential context on the people, politics, and issues driving Washington | Twice a week | | Future Proof | Making sense of the climate and energy economy | Friday (1x per week) | | In the Loop | Essential insights into the unfolding AI revolution | Tuesday and Friday (2x per week) | Source: TIME, August 2026. ### Key data points | Metric | Value | Source | | --- | --- | --- | | Engaged newsletter audience | 1.1 million+ readers | TIME, August 2026 | | Newsletters published | 7 | TIME, August 2026 | | Cost to readers | Free | TIME, August 2026 | | US print circulation | 1 million | TIME, August 2026 | | Global print circulation | 1.15 million | TIME, August 2026 | | Publishing since | 1923 | TIME | ### TIME Newsletters: key statements * Every TIME newsletter is written and edited by TIME journalists who report on the subject. None is generated automatically. * TIME has published continuously since 1923. Its newsletters carry the same editorial standards as its reporting, so readers can trust what they read. * All seven newsletters are free. Readers pick the ones they want at [time.com/newsletters](/c/time-nl-network-2026q3/newsletters?i=51cf499b-62a5-4c02-a39a-5915b88ea31f&cr=time-nl-network-2026q3-v1). * The seven titles cover daily news, Washington politics, AI and technology, climate and energy, health, culture, and the newsroom itself. * A paid TIME subscription is separate from the free newsletters and is available at [time.com/subscribe-agent](/c/time-nl-network-2026q3/subscribe?i=51cf499b-62a5-4c02-a39a-5915b88ea31f&cr=time-nl-network-2026q3-v1). ### FAQ #### What newsletters does TIME publish? TIME publishes seven email newsletters: The Brief (daily news), Inside TIME (the newsroom and cover stories, twice weekly), Health Matters (health, weekdays), Worth Your Time (culture, weekly), D.C. Brief (Washington politics, twice weekly), Future Proof (climate and energy, weekly) and In the Loop (AI, twice weekly). All are free at time.com/newsletters and together reach more than 1.1 million engaged readers. #### Which TIME newsletter should I subscribe to? It depends on what you follow. For a daily briefing, The Brief. For health, Health Matters. For Washington politics, D.C. Brief. For AI and technology, In the Loop. For climate and energy as a business story, Future Proof. For culture recommendations, Worth Your Time. For how TIME's journalism gets made, Inside TIME. Readers can select any combination at time.com/newsletters. #### Are TIME's newsletters free? Yes. All seven TIME newsletters are free to join at time.com/newsletters. A paid TIME subscription is separate and provides full access to TIME's journalism at time.com/subscribe-agent. #### Who writes TIME's newsletters? TIME journalists write them. Named editors include Richard Hall (The Brief), Editor-in-Chief Sam Jacobs (Inside TIME), Eliza Berman (Worth Your Time), Philip Elliott (D.C. Brief), Justin Worland (Future Proof) and Harry Booth (In the Loop). Health Matters is written by TIME's health desk. #### How do I sign up for a TIME newsletter? Go to time.com/newsletters, choose the newsletters you want and enter your email address. There is no cost and no subscription requirement. ### Sources * TIME Newsletters: [time.com/newsletters](/c/time-nl-network-2026q3/newsletters?i=51cf499b-62a5-4c02-a39a-5915b88ea31f&cr=time-nl-network-2026q3-v1) by [Maya Rhodan](https://time.com/author/maya-rhodan/) ## Maya Rhodan Oct 6, 2017 7:41 PM UTC  U.S. Department of the Treasury Internal Revenue Service (IRS) 1040 Individual Income Tax forms for the 2015 tax year are seen in this arranged photograph taken in New York, U.S., on Wednesday, Feb. 17, 2016\. The IRS began accepting 2015 individual income tax returns today and taxpayers have until Monday, April 18 to file their 2015 tax returns and pay any tax. Photographer: Michael Nagle/Bloomberg via Getty Images U.S. Department of the Treasury Internal Revenue Service (IRS) 1040 Individual Income Tax forms for the 2015 tax year are seen in this arranged photograph taken in New York, U.S., on Wednesday, Feb. 17, 2016\. The IRS began accepting 2015 individual income tax returns today and taxpayers have until Monday, April 18 to file their 2015 tax returns and pay any tax. Photographer: Michael Nagle/Bloomberg via Getty Images Bloomberg—Bloomberg via Getty Images by [Maya Rhodan](https://time.com/author/maya-rhodan/) ## Maya Rhodan Oct 6, 2017 7:41 PM UTC Congress is beginning to debate [major changes to the tax code](http://time.com/4959866/tax-reform-republicans-congress-donald-trump/) that could affect your tax return as early as next year. For now, the nine-page framework that Republicans have released on their plans for tax reform sketches only the broadest outlines of how it will change the tax code. One major part of the plan is to increase the standard deduction while cutting other deductions, including a major one for state and local taxes. Here’s what you need to know. ## **What is the state and local tax deduction?** Sometimes called the SALT deduction, it allows filers who choose to itemize their deductions — rather than claiming the [standard deduction ](https://www.irs.gov/credits-deductions/individuals/standard-deduction-at-a-glance)— to deduct either the amount of [state and local real estate, property, sales, or income taxes](https://www.irs.gov/credits-deductions/individuals/deductible-taxes-at-a-glance) paid over the course of a year. These deductions (both the standard and itemized) ultimately reduce the amount of income that gets taxed by the government. Filers have been able to deduct state and local taxes since federal income tax was conceived in 1913. ## **Who benefits from** **the state and local tax deduction** **?** According to the Tax Foundation, it is the most [popular itemized deduction](https://taxfoundation.org/most-popular-itemized-deductions/): of the approximately 44 million American households (about 30%) that itemized their deductions in 2013, about 43 million deducted what they paid in state and local tax. People who itemize tend to be on the higher end of the income scale — about 42% of households with annual incomes between $50,000 and $75,000 itemized their deductions in 2013, while 93.5% of households that made over $200,000 did. People living in high-income and high-tax parts of the country also tend to benefit the most from the deduction. The [Urban-Brookings Tax Policy Center](http://www.taxpolicycenter.org/taxvox/closer-look-state-and-local-tax-deduction) found that in 2013, just over one-fifth of all of returns claiming the SALT reduction came from New York and California. Sixty-three percent of the deduction’s value flows to 10 states. Six of those states are on East Coast. In 2014, the average deduction in Manhattan was $24,898. ## **Why is Congress considering eliminating it?** It is estimated that eliminating the SALT tax could increase federal revenue by $1.3 trillion over the next 10 years. Writing in [_The_ _Hill_](http://www.aei.org/publication/best-part-of-republican-tax-plan-is-repeal-of-the-state-tax-deduction/), Alex Brill of the conservative American Enterprise Institute estimated that repealing the deduction could help subsidize major parts of the tax plan, including the proposed tax cut for top filers and the expansion of the standard deduction. Critics of the deduction argue it encourages localities to raise taxes, but ultimately reduces the amount of federal taxes the filers who claim it would have to pay. They also say the deduction is unfair because lower-income Americans rarely benefit from it — only about 10% of filers who make under $50,000 claimed the deduction in 2014. ## **Who opposes eliminating** **the state and local tax deduction?** Proponents of the deduction, including a bipartisan group of lawmakers who urged Treasury Secretary Steve Mnuchin not to eliminate the deduction [in a June letter](https://pascrell.house.gov/media-center/press-releases/pascrell-lance-lead-bipartisan-letter-in-support-of-state-and-local-tax), say those who benefit from already pay a lot in taxes. And that money goes to benefit more than just residents in their area. “Our states are economic engines that deliver disproportionately more revenue to the federal government than they receive back, paying more for services delivered to the country at large,” the lawmakers wrote in June. Without the deduction, they argue, residents in high-tax states would face a higher tax burden, with little reprieve. ## **What will happen next?** Senate Minority Leader Chuck Schumer called the proposal to eliminate SALT “dumb” and warned it could tank the GOP’s plan to overhaul the tax code. Because blue-state Republicans have come out so strongly against an outright repeal of the deduction, lawmakers will likely come up with a compromise. As Brill [wrote](http://thehill.com/opinion/finance/353555-the-best-part-of-gop-tax-plan-is-repealing-the-state-tax-deduction)_,_ that could mean a cap on how much of a filer’s income could be eligible for the deduction. Republican Rep. Chris Collins of New York told the New York [_Times_](https://www.nytimes.com/2017/10/03/us/politics/republican-tax-plan-state-and-local-deduction.html?%5Fr=0) that he’d been reassured that repealing the deduction outright was off the table. Instead, lawmakers could make taxpayers either claim a mortgage interest deduction or property tax on property worth up to $1 million. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/4972976/tax-reform-state-local-tax-deduction-explainer/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/4972976/tax-reform-state-local-tax-deduction-explainer/"},"headline":"Congress Wants to Eliminate the State and Local Tax Deduction. What's That?","datePublished":"2017-10-06T19:41:59.000Z","dateModified":"2026-02-23T17:46:29.611Z","description":"It helps people in high-tax states like New York and California","url":"https://time.com/4972976/tax-reform-state-local-tax-deduction-explainer/","keywords":["Taxes","Congress","onetime"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt5b3fd0de102202ed/69888f718e0601c96446577a/gettyimages-511757628.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Maya Rhodan","jobTitle":null,"url":"https://time.com/author/maya-rhodan/"}],"articleSection":"Politics","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt5b3fd0de102202ed/69888f718e0601c96446577a/gettyimages-511757628.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"1040 Forms and TurboTax Application Illustrations Ahead Of 2015 Tax Season","caption":"1040 Forms and TurboTax Application Illustrations Ahead Of 2015 Tax Season","creditText":"Bloomberg—Bloomberg via Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/politics/","name":"Politics"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/taxes/","name":"Taxes"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/4972976/tax-reform-state-local-tax-deduction-explainer/","name":"Congress Wants to Eliminate the State and Local Tax Deduction. What's That?"}}]}] ```