Homeowners rush to prepay property taxes before Republican tax law’s limits on ‘SALT’ deductions kick in

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Homeowners across the nation are rushing this week to prepay their property taxes for 2018 before the Republican tax law kicks in Jan. 1 and effectively raises the levy on higher-end homes.

The new legislation, which President Donald Trump signed into law last week, caps at $10,000 the amount of state and local taxes that filers can deduct from their federal tax bill. That means those whose tax bills regularly exceed that amount could benefit by paying more tax in 2017, when the deduction has no limit.


The new tax law ‘is a middle-class tax hike for us, and we’re trying to postpone at least some of that for at least one more year.’


Hans Riemer, Montgomery County Council


Local offices in a number of states saw a busy post-Christmas rush on Tuesday as taxpayers calculated the effects of the new law. In Fairfax County, Va., where property values have risen sharply in recent years, hundreds of people lined up at the government center to prepay. Across the Potomac River, in Montgomery County, Md., the county council held a special session Tuesday morning to pass legislation allowing residents to prepay their taxes.

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The new tax law “is a middle-class tax hike for us, and we’re trying to postpone at least some of that for at least one more year,” said Montgomery County Council President Hans Riemer.

An expanded version of this report appears at WSJ.com

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