The U.S. Congressional Research Service has published an updated report dated 16 October 2024 on the Federal Deductibility of State and Local Taxes.
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Summary
Under current law, taxpayers who itemize can deduct state and local real estate taxes, personal property taxes, income taxes, and sales taxes (in lieu of income taxes) from federal income when calculating taxable income. The federal deduction for state and local taxes (the SALT deduction) shifts the burden for part of these state…