Changes how much people can deduct for state and local taxes, and lets homeowners deduct some infrastructure taxes.
This bill would change the rules for how much individuals can deduct for state and local taxes, setting different limits based on income and filing status. It would also allow homeowners to deduct certain special taxes they pay for community infrastructure projects like roads or schools, as long as these taxes are for their main home.
Today, the deduction for state and local taxes is capped at $10,000 for most people and $5,000 for married individuals filing separately, regardless of income. Also, special assessment taxes for infrastructure are generally not deductible. After this bill, the state and local tax deduction would become tiered. High-income taxpayers (e.g., joint filers earning over $215,000) would have a $0 limit. Married individuals filing separately would have a $5,000 limit (unless high-income), and others would have a $10,000 limit (unless high-income). Homeowners would also be able to deduct qualified special assessment taxes paid on their main home for community infrastructure projects, subject to these new limits.
HR 7561 · 119th Congress · February 12, 2026 · AI Summary by gemini-2.5-flash · 5/10
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