Nick PerryFounder and CEO of 7 Figure Cartel

The New Homeowner Tax Break That Could Put Thousands Back in Your Pocket

9 Mar 2026 · 1 min

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In this YouTube segment, Nick Perry explains a recent IRS policy change that raises the state‑and‑local tax (SALT) deduction cap for homeowners from $10,000 to $40,000. He illustrates how the higher limit lets homeowners deduct more of their property and state income taxes, using a concrete example: a homeowner paying $7,000 in property tax and $13,000 in state income tax could previously deduct only $10,000, but now can deduct the full $20,000. For someone in the 32% marginal tax bracket, the additional $10,000 deduction translates into $3,200 of tax savings. Perry notes the only caveat: the benefit is only available to taxpayers who itemize deductions, which can be an administrative inconvenience.

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The IRS announced a huge tax break for all homeowners starting right now, and it's about to make you a lot of money. So, you know, in the past you could only deduct a total of $10,000 in state and local taxes. This includes property taxes and state income taxes all combined. But now you can deduct up to $40,000. So if you were paying $7,000 in property taxes and $13,000 in state income taxes, you could only deduct $10,000 last year. But now you can deduct full $20,000. See, if you're in a 32% tax bracket, that extra $10,000 deduction puts $3,200 back in your pocket. But there's just one catch: you've got to itemize. Yes, it's annoying, but at least you get your hard-earned money back.