Tax Relief for Middle Class Families Act of 2023
Key claim: This House bill would raise the federal cap on deducting state and local taxes from $10,000 to $100,000 for tax years 2018 through 2025.
Abstract
(HR680 · 118th Congress) Tax Relief for Middle Class Families Act of 2023 This bill increases from $10,000 to $100,000 the maximum amount of the tax deduction for state and local taxes in taxable years 2018 through 2025. Latest action (2023-01-31): Referred to the House Committee on Ways and Means.
Why this matters
The $10,000 SALT deduction cap is one of the most contested provisions of the 2017 TCJA, with itemizers in high-tax states bearing most of its cost. A tenfold increase to $100,000 — applied retroactively to 2018 — would represent a major tax cut concentrated among higher-income households who itemize, and would materially reduce federal revenue. The bill remains at introduction, but it signals continued pressure to revisit the cap before its scheduled 2025 expiration.