How the state and local tax deduction affects homeowners

The state and local tax deduction lets families lower their federal taxable income by the amount of money they already paid to state government and local government. That includes state income tax, sales tax, and property tax. >> Those taxes were fully deductible, and that took care of roads, bridges, school districts, etc. >> Prior to 2017, it was unlimited.All dollars taxed by state and local governments weren't subject to federal tax. that ended in 2017 when Congress capped the deduction at $10,000. It's ...