Texas homeowners are facing significant financial challenges due to escalating property taxes and soaring insurance premiums. In 2024, the average homeowners insurance premium in Texas increased by nearly 19%, marking the highest annual spike in over a decade. Factors such as extreme weather events, rising construction costs, and increased reinsurance expenses have contributed to this surge. Simultaneously, property taxes have been on the rise, further straining homeowners’ budgets. (The Texas Tribune, Houston Chronicle)

In response to these financial pressures, the U.S. House of Representatives has passed a bill proposing to increase the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for married couples filing jointly. This change, if approved by the Senate, could provide significant tax relief to homeowners, allowing them to deduct a larger portion of their property taxes and insurance premiums.

For homeowners in Texas, this proposed increase could alleviate some of the financial burdens imposed by rising property taxes and insurance costs. By reducing federal tax liability, homeowners may have more disposable income to cover these expenses. However, it’s important to note that the bill includes income-based restrictions, with the cap phasing out between $500,000 and $600,000 in income. (WSJ)

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