The bill significantly alters the State and Local Tax (SALT) deduction limitation for individuals, introducing a tiered system based on modified adjusted gross income (MAGI). For taxpayers whose MAGI exceeds a specified threshold, such as $215,000 for joint filers or $107,500 for single filers, the deduction is eliminated entirely, becoming $0. Taxpayers below these thresholds can deduct up to $10,000, or $5,000 for married individuals filing separately, with these dollar amounts subject to future inflation adjustments. Additionally, the legislation creates a new deduction for qualified special assessment taxes , specifically those imposed on real property within a special assessment district to fund community infrastructure projects. These projects encompass a wide range of public works, including transportation, schools, utilities, and emergency facilities, provided they directly benefit the taxed property. This new deduction is limited to taxes paid or accrued solely with respect to a taxpayer's principal residence . Both the revised SALT deduction limits and the new special assessment tax deduction will take effect for taxable years beginning after December 31, 2026.