Get Ready for a 45.5% Tax Bracket
The SALT deduction has a rapid phase-out which can create a 45.5% tax rate for certain taxpayers
Both the Senate and House state and local tax (SALT) proposals will allow most taxpayers to deduct up to $40,000 of SALT. However, as your income increases from $500,000 to $600,000 your SALT deduction limit will drop to $10,000.
This can lead to a top tax rate of 45.5% for single taxpayers and about 41.60% for most married couples.
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