Op-Ed: $40K SALT Cap a Major Win for Long Island Taxpayers

By Congressman Nick LaLota

For far too long, Long Island families have faced a financial squeeze—from Albany’s high taxes and unfunded mandates to Washington’s unfairly low $10,000 cap on the state and local tax (SALT) deduction. But now, thanks to persistent advocacy and smart negotiation, relief is on the horizon.

I’m proud to announce a major win: the House-passed One Big Beautiful Bill includes a provision I championed to raise the SALT cap to $40,000 for households earning under $500,000, with both the cap and income threshold indexed for inflation. If the Senate passes this bill and the President signs it into law, many Long Islanders could save up to $8,000 on their 2026 federal tax returns.

This fight wasn’t easy. I faced pressure to accept a weaker deal—a $30,000 cap that wasn’t indexed and would have reverted to $10,000 after ten years. That wasn’t good enough for our community. I held firm, because Long Island families deserve more than temporary relief—they deserve lasting, meaningful change.

Why does this matter? The numbers say it all. In our region, median property taxes alone far exceed $10,000. Yet only 16.3% of NY-01 taxpayers currently claim the SALT deduction. The cap is simply too low to help most families here.

Under my proposed $40,000 cap—with automatic adjustments for inflation—92% of households in our district will now be fully covered. That is real progress.

Consider this: a household earning $333,000 and paying $20,000 in state income taxes and another $20,000 in property taxes would now be able to deduct the full $40,000. That’s fairness restored and double taxation finally addressed.

When I said “No SALT, No Deal, For Real,” I meant it. It wasn’t a slogan—it was a commitment. I voted against tax plans that ignored this issue and refused to accept watered-down deals that would have shortchanged our region.

I want to thank Speaker Mike Johnson and Chairwoman Elise Stefanik for working with me to deliver this breakthrough. This proves that when we stay focused and fight smart, we can achieve real results for the people we serve.

The bill now moves to the Senate, and I’ll keep fighting until it becomes law. I didn’t come to Washington to play politics—I came to deliver for Long Island.

And I’m just getting started.

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Nick LaLota represents the First Congressional District (North Shore and East End Suffolk County) in the US House of Representatives. A Republican, he was first elected in 2022.