With the new SALT cap, a lot more will be taking sales tax deduction

[Abby Normal]

As long as sales tax plus RE/PP taxes are more than 10k, you don't have a taxable state income tax refund next year.

Also, MD backs out state income tax from itemized deductions, but not state sales tax, so it saves MD taxes too.

And MD couples who have around 20k in itemized will likely be better off itemizing and paying more in federal taxes, because they'd save more in MD taxes than they pay in additional federal taxes, because the MD standard deduction is so low, and you can't itemize state unless you itemize federal.

Would be interested to learn how this shakes out in other states.

[Lee B]

Oregon has very low standard deductions so most of my clients will end up itemizing for state only, which Oregon allows.

If you own a house and are still paying off a mortgage, that is enough for you to itemize on your Oregon tax return.

Oregon has no sales tax, so that is not an issue.

[jklcpa]

Ah, it's interesting to see the emerging strategies coming out.  This one doesn't affect me because, although some of my clients will be affected by the SALT limitation,  the pattern cbslee described is about what I expect for my DE residents and for all of the same reasons. DE is also a state with no sales tax.   For those of mine that are PA residents, again this will be a nonevent because PA's tax system doesn't have itemizing.

[BulldogTom]

I think this will help some of my clients.  I will have to go back and look at the sales tax deduction tables and see if the amounts will get my clients up to the 10K limit.  

Thanks for pointing that out.

Tom
Modesto, CA

[Max W]

The state with the highest sales tax allowance, $3745, for incomes over $300K, is .............. TN.  Mississippi's is $3613.