Residents Most Likely to Pay SALTs in These Cities

The Tax Cuts and Jobs Act of 2017 changed deduction limits for state and local taxes (SALT), causing some high-tax area residents to have to foot a heftier bill.

In SmartAsset's latest study, the findings show that California residents are most likely overall to pay SALT. Five out of the top 10 cities were in the Golden State, with Fremont ranking highest at number two. Along with San Jose, San Francisco, and Irvine, these four cities also rank in the top five for concentration of high-earning households. Yonkers, N.Y. ranked number one, where residents are projected to pay about $3,700 annually in SALT. Suburban Aurora, Ill. tied with San Jose for third place, and while its effective SALT rate is 31st overall, Aurora ranked in the top 20 for all other metrics of the study.

State and local taxes (SALT) are a frustrating part of living in a high-tax locale. Before the passing of the Tax Cuts and Jobs Act at the end of 2017, which ushered in sweeping tax legislation overhaul, Americans could deduct state and local taxes, including income and property taxes, from their federal income taxes. Under the new tax law, that deduction has been capped at $10,000. This change will disproportionately affect residents who pay high state and local taxes.

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