Updated: Apr 14, 2020
If you itemize deductions, the amount you can write off for state and local taxes (SALT), including state income or sales tax and local property taxes, is limited in 2018 to $10,000 ($5,000 for married persons filing separately). Until now, there was no limit.
If you live in a high tax state, you likely won’t be able to deduct all of your SALT. Some states have enacted or are considering enacting workarounds to enable their residents to get a federal tax break for SALT payments. However, the IRS has already nixed one attempt. It’s unclear whether states will go back to the drawing board on this one.