Californians are about to get some tax relief.
The One Big Beautiful Bill Act, the new Republican tax-cut bill signed into law by President Donald Trump on July 4, raises the state and local tax (SALT) deduction cap from $10,000 to $40,000 for tax years 2025 through 2029, which should benefit Californians, who pay some of the highest state income and property taxes in the nation.
The cap will be increased by 1 percent annually until 2030, when the cap reverts back to $10,000. The cap’s increase is one part of an overarching tax relief package.
The SALT deduction means taxpayers can deduct state and local taxes, such as property and income taxes, from their federal taxable income….