U.S. Rep. Josh Gottheimer announced today that he is introducing new legislation aimed at eliminating what he called a “marriage penalty” in the federal tax code, a move he said would provide meaningful relief to families in high-taxed states such as New Jersey.

The proposal, titled the Tax Cuts, Not Penalties, for Married Couples Act, would double the cap on the State and Local Tax (SALT) deduction for married couples filing jointly. Under current law, both single filers and married couples face roughly the same cap — about $40,400 — despite many households having dual incomes and higher overall tax burdens.

Gottheimer said the disparity “defies common sense,” arguing that couples who file jointly should not be treated the same as individuals.

“My bill comes back to a simple idea: if you file jointly, you should receive a joint deduction,” Gottheimer said during a press conference this afternoon.

If enacted, the legislation would raise the SALT deduction cap for married couples to $80,800 for tax year 2026, effectively allowing each spouse to claim the full deduction. The change could be particularly impactful in places like Lakewood, where rising property taxes set a new record high last year.

Lakewood, which has seen rapid population growth in recent years, is home to thousands of property tax paying households with multiple earners. Local families frequently face steep property tax bills, making the SALT deduction a critical tool for offsetting costs. Advocates say the current cap disproportionately affects such communities, where married couples may pay far more in combined state and local taxes than single filers.

In Lakewood, the average property tax bill in 2025 was $8,974, a 6.2% increase from last year. In Jackson the average bill was $9,047 (+6.4%), and in Toms River the average property tax due was $8,526 (+7.9%).

The issue dates back to the 2017 Tax Cuts and Jobs Act, which imposed a $10,000 limit on SALT deductions. Although subsequent changes have increased the cap for many taxpayers to about $40,400, Gottheimer said the current structure still penalizes married couples.

“Why would two people who happen to be married get the same SALT deduction as one person?” he said.

Gottheimer, a co-chair of the bipartisan SALT Caucus, has been a leading voice in efforts to roll back the cap. He noted that approximately 25% of New Jersey taxpayers are still paying more in federal taxes than they did before 2016, even with recent adjustments.

He described eliminating the marriage penalty as a “commonsense” step that could gain bipartisan support and be included in upcoming federal tax legislation.