To amend the Internal Revenue Code of 1986 to eliminate the State and local tax deduction marriage penalty.
Sponsored By: Representative Gottheimer, Josh [D-NJ-5]
Introduced
Summary
Eliminate the marriage penalty in the SALT deduction by aligning state-and-local-tax caps and the modified adjusted gross income phase-outs with filing status. This bill would change the SALT cap and MAGI thresholds so they scale for single, joint, and married-filing-separately filers.
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- Married couples filing jointly would see the SALT deduction cap set at $80,800 and the MAGI phase-out threshold set at $1,010,000, reducing the current gap between joint and single filers.
- Married individuals filing separately would have a cap of $20,200 and a MAGI threshold of $252,500, reflecting half of the joint amounts.
- Single filers would use the base amounts: a $40,400 SALT cap and a $505,000 MAGI threshold that the bill treats as the reference point.
- The bill also edits related Internal Revenue Code language to record filing status and remove misplaced half-amount references so the new scaling applies consistently.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Eliminate SALT marriage penalty for couples
If enacted, this bill would change the State and Local Tax (SALT) deduction rules for tax years after Dec 31, 2026. It would set a 2026 base SALT cap of $40,400 for single filers, $80,800 for married filing jointly, and $20,200 for married filing separately. It would also set the MAGI phase‑out threshold at $505,000 for single filers, $1,010,000 for joint filers, and $252,500 for married filing separately. These changes would raise limits for many married couples who file jointly but would reduce limits for some married taxpayers who file separately.
Sponsors & CoSponsors
Sponsor
Gottheimer, Josh [D-NJ-5]
NJ • D
Cosponsors
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 7/15/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov