The Tax Cuts and Jobs Act of 2017 is sunsetting in phases. The SALT cap, $750k mortgage interest cap, and higher standard deduction were all scheduled to expire end of 2025 absent action. That action arrived in partial form — the SALT cap raised to $40k for couples under $500k AGI — but much of the rest reverts to pre-2018 rules. Net effect for high-tax-state housing: marginal improvement. Not a tidal wave. Modeling mortgage deductions on a new purchase in NJ, CT, or NY now requires fresh math.
Regulations
The TCJA Sunset and the Housing Market: What Changes in 2026
The SALT cap, mortgage interest deduction, standard deduction — all were temporary pieces of the 2017 tax law and all are set to change. What's locked in, what's still in play, and what it means for high-tax-state housing.
RegulationsApril 1, 202611 min