New Tax Law • San Diego Homeowners
The SALT cap just changed.
The SALT cap just changed.
Your mortgage just got cheaper.
The "One Big Beautiful Bill" is generating plenty of debate, but whatever your position, the financial details affect real households. For qualifying San Diegans, the SALT deduction just increased from $10,000 to $40,000, and it changes the rent-vs-own math in a signicifcant way. Here's what it means for your monthly paycheck.
- SALT deduction cap raised from $10K → $40K (through 2029)
- Combined with mortgage interest, many SD homeowners can now deduct $50,000+ annually
- At a 28–32% tax bracket, that's potentially $1,200–$1,800/month back in your paycheck
- Applies to households earning under ~$500K AGI — income limits apply
- Free breakdown PDF + 15-min strategy call available below
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3-Minute Breakdown
Rent vs. Own in San Diego — After the New Tax Law
Brian breaks down the math: a $1M home, a $5,000/month rental, and how the new SALT deduction changes the net cost comparison.
Video coming soon — check back shortly
Side-by-Side Scenario
The numbers — rent vs. own
3-bedroom home in San Diego. $1M purchase price, 20% down, 6% rate.
Renting
Monthly rent
$5,000
Annual outlay
$60,000
Tax deductions
$0
Equity built
$0
10-yr cost (no rent increases)
$600K+
Owning
PITI payment
$6,400
Mortgage interest deduction
~$48,000/yr
SALT deduction (new law)
up to $40,000/yr
Est. monthly tax savings*
$1,200–$1,800
Effective net payment*
~$4,600–$5,200
*Estimated at 28–32% marginal tax bracket. Actual savings depend on your income, filing status, and withholding strategy. Consult a licensed CPA before adjusting withholdings.
Common Questions
What people are asking
"What exactly changed with the SALT deduction?"
The "One Big Beautiful Bill" has generated significant debate, but regardless of where you stand on the legislation, what's in it matters for your finances. For qualifying California households, the federal SALT deduction cap increased from $10,000 to $40,000. This applies to married filers earning under approximately $500K AGI and is in effect through 2029. For homeowners paying significant state income and property tax, that's a change worth understanding.
"Does this really affect my monthly paycheck?"
Potentially yes, but it requires action. The right strategy is to work with your CPA to adjust your W-4 withholding to reflect your new deduction picture. The tax savings don't appear automatically, your CPA needs to model it first. This is exactly why we need to meet.
"I thought the mortgage interest deduction already existed, what's new?"
The mortgage interest deduction (up to $750K of loan principal) has been around since TCJA in 2018. What's new is the $40,000 SALT cap - which, when stacked on top of mortgage interest, significantly increases the total deduction available to California homeowners. That combination is what changes the math.
"Does this mean everyone should buy right now?"
Not necessarily — sometimes renting is the smarter short-term move. This conversation is about understanding your after-tax ownership cost, not just the sticker payment. The goal is to help renters and prospective buyers identify whether now is the right moment to stop building someone else's equity and start building their own.
"How do I know if I qualify for the full $40,000 SALT deduction?"
The full $40K cap is available to households with AGI under approximately $500,000. The benefit phases out above that threshold. A CPA can confirm your eligibility and calculate the exact impact on your tax return and withholding strategy.
Brian Cane
Broker | President • Cane Real Estate | Keller Williams Realty
DRE# 01423505 | Brokerage DRE# 01932411 | 7979 Ivanhoe Ave #350, La Jolla, CA 92037