HR 9626: To amend the Internal Revenue Code of 1986 to eliminate the State and local tax deduction marriage penalty.

HR 9626 in plain English: This bill would amend the federal tax code to eliminate the 'marriage penalty' in the State and local tax (SALT) deduction by setting the SALT deduction cap for married couples filing jointly at 200 percent of the single-filer cap, rather than the same dollar amount as single filers.

Stated purpose

This bill aims to eliminate the 'marriage penalty' in the State and local tax (SALT) deduction by ensuring that married couples filing jointly can deduct twice the amount that single filers can deduct, rather than being capped at the same dollar limit as a single person.

Key points

• Sets the SALT deduction cap for joint filers to 200% of the single-filer cap, removing the marriage penalty
• The base SALT cap for 2026 remains $40,400 for single filers, with joint filers receiving double that amount
• The phase-out threshold for 2026 remains $505,000 for single filers, with joint filers subject to 200% of that amount

Arguments supporters make

• Under current law, two single people each get the full SALT cap, but if they marry they are still limited to the same combined cap — this bill simply makes the tax code treat married couples fairly compared to single filers.
• Residents of states with higher property and income taxes are hit hardest by the marriage penalty, and fixing it gives middle-class homeowners and families meaningful financial relief.
• The bill aligns the SALT cap with the longstanding principle in the tax code that joint filers should not be penalized relative to two single individuals for being married.

Arguments opponents make

• Doubling the SALT cap for joint filers primarily benefits wealthier households in high-tax states, meaning the tax relief is not evenly distributed across all married Americans.
• The change reduces federal revenue, which could increase the deficit or shift the tax burden to Americans who do not itemize deductions or who live in lower-tax states.
• Critics may argue this is a targeted benefit for residents of a handful of high-tax states and their congressional delegations, rather than broad, nationwide tax fairness.

Tradeoffs

Reducing the marriage penalty for joint filers provides relief to married couples in high-tax states but comes at the cost of lower federal tax revenue, and the benefit flows disproportionately to higher-income households and residents of states with high state and local taxes rather than to all taxpayers equally.

Current status in Congress: In committee.

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