COEP Replication Package for "A SALT on Real Estate? Housing Market and Migration Responses to the Limit on the State and Local Tax Deduction"

The
2017 Tax Cuts and Jobs Act placed a $10,000 limit on the deductibility of state
and local taxes (SALT) for federal tax purposes. This policy change likely
increased the cost of home ownership for some households in high-tax areas. We
examine whether these costs were capitalized into the local housing market
through slower growth in housing prices. Motivated by the argument that the
SALT cap caused some taxpayers to relocate, we also examine whether the cap
influenced interstate migration patterns. The cap led to a sizeable reduction
in home price growth but had no discernable impact on state-to-state migration.