State and Local Tax (SALT)

State and Local Tax (SALT) refers to the taxes imposed by state and local governments on income, property, sales, and other transactions. These taxes fund essential services such as education, public safety, infrastructure, and health care. SALT includes things like state income tax deducted from your paycheck, property taxes on real estate, and sales taxes added to purchases. Understanding SALT is important for managing personal finances, as these taxes can significantly impact your overall tax burden and affect local budgeting and service levels in communities.