Which U.S. counties claim the highest SALT deductions?

State and Local Tax (SALT) deductions vary widely across the country. According to 2022 IRS data, counties in high-income metropolitan areas—especially in states like New York, California, and New Jersey—tend to have the highest average SALT deductions. For example, counties like Marin (CA), Westchester (NY), and Somerset (NJ) report average deductions well above $15,000. These areas not only have higher property taxes but also higher incomes, leading to larger deduction claims under the current tax code.

Where are SALT deductions the most commonly claimed?

While some counties report high average deduction values, others have a larger share of taxpayers who actually claim the deduction. In counties such as Nassau County (NY) and Fairfax County (VA), more than 40% of taxpayers claimed SALT deductions in 2022. These regions typically feature a large number of homeowners and high state income taxes, which contribute to the prevalence of SALT deduction claims.

Which regions claim the least in SALT deductions?

On the other end of the spectrum, counties across the Midwest, Great Plains, and South generally report lower average SALT deductions and lower participation. Many rural counties in states like Mississippi, South Dakota, and West Virginia show average deductions below $6,000 and participation rates under 5%. These trends reflect lower property values, less state income tax burden, and a greater number of standard deduction filers in those areas.

How do urban and suburban areas compare?

Urban and suburban counties typically claim more in SALT deductions than rural areas. This is especially evident around major metropolitan centers such as New York City, San Francisco, Washington D.C., and Chicago. Suburban counties like Montgomery (MD), Fairfield (CT), and Cook (IL) show both high average deductions and high participation rates. These trends align with higher housing costs and income levels seen in these areas.

What can travelers and homeowners learn from this data?

For individuals planning a move or curious about tax differences across the U.S., this dataset reveals significant regional variation. Higher SALT deductions often signal higher housing costs and local tax burdens—important factors to consider for homebuyers, business relocators, or those considering a change in residency. Meanwhile, counties with lower SALT deductions may indicate more affordable living but fewer opportunities to itemize deductions under current tax law.

Why does the SALT deduction matter to taxpayers?

Although policy changes surrounding SALT deductions have drawn political attention, at the household level, they primarily affect taxpayers who itemize and reside in high-tax states. Understanding where SALT deductions are most utilized helps clarify the impact of tax policy and illustrates the geographic divide in who benefits most. Whether you're a taxpayer evaluating your return or a policymaker considering reforms, these county-level patterns provide meaningful insight into America's tax landscape.

SALT for the Wealthy