Why are Georgia itemized deductions for state & local taxes being limited to $10,000 when not limited for Federal purposes?

[wallacepatrickm]

Line 12.b. of the GA Form 500 is reducing itemized deductions by the amount of state/local taxes that are above the former $10,000 Federally allowed cap. Did GA not conform to the OBBBA changes that increased the cap to $40,000 for 2025?

[DoninGA]

No, Georgia is using the prior SALT limit of $10,000.  It has not incorporated the new federal SALT limit of $40,000 into the the Georgia tax code.

[oneserve000]

Where is the evidence that shows GA is limiting taxes to 10,000?  None of the tax booklet instructions say this anywhere.  I see no articles or news that shows they did not change with Federal.  in fact the instructions booklet for 12a - 12c, ask for the total federal itemized, then the taxes paid to other states removed to come up with the new total.  Nothing in the instructions saw use 10,000, unless the other state reaches the 10,000 max value.

[DoninGA]

@oneserve000 From the 2025 IT-511 Individual Income Tax Booklet page 17- https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download

Note: For all taxpayers (full year, part year, and nonresident), if state & local income taxes were
limited on the Federal return to $10,000 ($5,000 if married filing separately)

[Knockout]

Georgia SB1199 passed the house yesterday and has been sent to the Georgia State Senate for a new vote of updated bill. 
SB1199 is an annual bill that conforms state tax law to federal tax law.

It isn’t guaranteed that Georgia will conform the SALT deduction limit increase to match the federal SALT deduction increase to $40,000.

Currently Georgia SALT limit is still at the 2024 level of $10,000. 
Depending on the Senate vote (which hopefully will happen soon), Georgia will/won’t pass SB1199 to bring Georgia tax law to

conform to federal tax law changes that occurred in the middle

of 2025 (but are retroactive at the federal level as of 1/1/2025). Even if SB1199 is passed by Georgia State Senate, it won’t necessarily adopt the SALT increase for 2025 tax year. Waiting to see how State Senate Votes. They just received the bill yesterday 3/18/26.

[Knockout]

The Georgia State Senate is currently (3/19/26) deciding whether to increase SALT deduction to $40k (to comply with Federal increase). They just received the SB1199 from the house yesterday (3/18/26).

SB1199 is the annual bill that aligns Georgia code to federal revenue laws. 
SB1199 passing doesn’t necessarily mean Georgia will conform to all Federal Tax Code changes for 2025, so we will have to wait and see the outcome before knowing how the Federal SALT deduction increase will ultimately work with Georgia State Taxes. Hopefully they will.

[oneserve000]

Thanks for taking part of the booklet out of context. That section is how to deal with deductions IF your state and local taxes are less than 10,000. It doesn’t say 10,000 is the max limit. 

[DoninGA]

What part of "limited on the Federal return to $10,000" is out of context?

[oneserve000]

The part where federal IS NOT limited to 10,000 state and local taxes anymore this year. And the IF part that says IF your federal was limited to 10,000, but obviously federal was not limited. So none of that applies. What’s clear is 12a is federal deductions and you subtract 12b that is “other” state deductions. That equals 12c. So if your federal was never limited to 10,000, because your federal deductions are greater than 10,000, then the if statement is false and doesn’t apply. 

[DoninGA]

That $40,000 limit is on a federal tax return Schedule A. 

That is not on a Georgia state tax return Form 500, it is $10,000 until the Georgia state legislature changes the Georgia state tax code to comply with the federal code.

[oneserve000]

Of which none of that is listed in the booklet. It may be GA tax code. But the booklet doesn’t account for GA 10,000 limit. Very poorly written by GA. 

[user17715872872]

The Georgia Governor signed HB1199 earlier today.  As a result, I canceled my appointment to amend my Georgia return for 2025.

[Knockout]

Thank you for the update! They voted quickly, thank goodness. I hope this clears the confusion and that Georgia will align our state amounts with the federal SALT deduction.

[user17715872872]

Apparently, I’m learning despite HB1199 passage, the SALT deduction in Georgia remains at $10,000.

Looks like I was celebrating too early.

[Tberwald9]

I read HB1199 and don't see the SALT exclusion listed in section 1. I already filed an amended return, unfortunately. Also not a tax law expert. Can you explain why 1199 does not correct the SALT differences between federal and GA?