Officials in New York, New Jersey, California, and Maryland are going to the mat against the White House, reworking their tax codes to ease residents' pain from new limits to federal deductions for state, local and property taxes.
Starting this year, the Tax Cuts and Jobs Act, the recently enacted federal tax overhaul, caps payers' deductions on their property, state and local income taxes (SALT) at $10,000.
In 2015, the average New Yorker's SALT deduction was more than $22,000. In New Jersey and California, those deductions were around $18,000, while Marylanders claimed an average deduction of nearly $13,000.
Previously, there was no limit on deductions for these local levies. The change means many residents in these states — and many others — will now pay more to the federal government. (See chart below.)