Some homeowners could see tax breaks if Trump's bill passes
Why it matters: Expanding the state and local tax (SALT) deduction could be boon for homebuyers in expensive areas where taxes run high.
How it works: The latest version of the legislation proposes to raise the deduction cap from its current $10,000 a year limit to $40,000 for five years.
Homeowners with relatively high incomes and steep property taxes especially stand to save.
Catch up quick: A group of Republican lawmakers from blue states with high taxes led the charge.
Before 2017, when Trump signed his first-term taxes into law, people could deduct all state and local taxes from their federal bills.
The big picture: Property taxes have soared nationwide in recent years.
The top states with the most properties taxed at $10,000 or more annually are New Jersey (39.9%), New York (25.9%), Connecticut (19.4%), California (19.3%) and Massachusetts (18.4%), according to a report from Realtor.com.
What we're hearing: The National Association of Realtors previously cheered the SALT push as a key win for real estate.
Case in point: In property tax-heavy Texas, buyers might spring for roomier or flashier houses knowing bigger tax breaks await, says Eric Bramlett, who owns an Austin brokerage.
That could free up inventory for other house hunters.
"The accountant's desk will be the first domino, and open house traffic will be the next," Bramlett tells Axios.
Between the lines: Sky-high housing costs are making it hard for many homebuyers to find a place they can afford.
Economic uncertainty is also sidelining some shoppers.
Reality check: Not everyone pays tens of thousands of dollars in state and local taxes.
A SALT cap increase like the one moving through Congress "would have the most impact on homeowners in high-tax states and in high-dollar homes," said Realtor.com senior economist Joel Berner in the report.
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