The newly unveiled GOP tax plan could have a varied effect on U.S. families by reducing the number of tax brackets from seven to four, doubling the standard deduction, and changing the mortgage interest cap to mortgages of $500,000 or less.
In general, families with higher income will save the most under the new tax plan, while the median household gets a tax break of around $520. SmartAsset looked at the effects on income taxes by the pre-Trump plan and post-Trump plan on four brackets of homeowners -- low, median, high, and highest income earners in the 20 biggest U.S. cities.
No longer being able to deduct state and local taxes will hurt higher-earning residents in states like California, New York and Missouri. Our models indicate this change will lead families in those place to pay more. For example, New York City families who earn $1.5 million will pay an extra nearly $30,000 in taxes.
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