Cap increased to $40,000 for MFJ ($20,000 Single) for 2025–2029; indexed annually; reverts to $10,000 in 2030. Income phaseout begins with MAGI of $500,000 (single, MFJ, HOH) and $250,000(MFS).
Example: A married couple paying $18,000 in state income tax and $15,000 in property tax can deduct $33,000 (within the $40,000 cap) for 2025.