2027 SALT Deduction Changes: Can Florida Homeowners Deduct More Property Taxes?

Florida homeowners with substantial property tax bills may benefit from changes to the federal state and local tax deduction, commonly known as the SALT deduction.

The SALT deduction allows eligible taxpayers who itemize to deduct certain state and local taxes on their federal income tax returns.

Although Florida does not have a state individual income tax, residents may still qualify for deductions involving property taxes and eligible sales taxes.

What is the SALT deduction limit for 2027?

Under the law currently in effect, the SALT deduction limits are:

These general limits are lower for married taxpayers filing separately and may be reduced for higher-income taxpayers.

Why is this important for South Florida homeowners?

Homeowners in areas such as Fort Lauderdale, Boca Raton, Coral Gables, and Miami Beach may pay substantial annual property taxes.

For households with expensive homes, the higher SALT deduction limit could potentially increase the amount of deductible state and local taxes.

However, the deduction only provides a benefit when itemizing produces a better result than claiming the standard deduction.

Which taxes can Florida residents deduct?

Eligible taxpayers may be able to deduct certain nonbusiness real estate taxes, qualifying personal property taxes, and state and local sales taxes.

Because Florida does not impose a state individual income tax, residents generally consider eligible sales taxes rather than state income taxes when calculating this portion of their federal deduction.

Taxpayers cannot deduct both state income taxes and general sales taxes for the same year.

Are there income limitations?

Yes.

The increased SALT deduction limit is subject to a phaseout for taxpayers whose modified adjusted gross income exceeds specified thresholds.

For 2026, the phaseout begins above $505,000 for most filing statuses, with a lower threshold for married taxpayers filing separately.

The applicable thresholds and calculations should be reviewed for the relevant tax year.

As a result, high-income households may receive less benefit from the expanded deduction than the headline limit suggests.

Does the deduction include rental property taxes?

Property taxes associated with rental properties are generally treated differently from personal itemized SALT deductions.

Qualifying rental or business property taxes may be deductible as business or rental expenses under applicable rules.

This distinction matters for South Florida property investors who own both personal residences and income-producing real estate.

Should homeowners change their tax strategy?

Before making decisions, taxpayers should calculate their estimated itemized deductions and compare them with the standard deduction.

Mortgage interest, charitable contributions, and other eligible expenses may also affect the result.

A South Florida homeowner with a substantial property tax bill should not assume the entire amount will automatically be deductible.

James Ridout CPA helps homeowners, investors, and high-income individuals evaluate federal tax deductions and develop effective tax planning strategies. Contact the firm to discuss the 2027 SALT deduction changes.