Jacobs Engineering Group Employees and the New California SALT Deduction Boost

Healthcare Provider Update: Healthcare Provider for Jacobs Engineering Group Jacobs Engineering Group provides health benefits to its employees through various insurance plans, with specific details on healthcare providers not publicly disclosed. However, it is common for large companies like Jacobs to partner with national insurers to offer health insurance coverage, possibly including names like UnitedHealthcare, Anthem, or Aetna. Potential Healthcare Cost Increases in 2026 As Jacobs Engineering Group approaches 2026, employees should brace for significant healthcare cost increases due to the combination of soaring ACA premiums and evolving employer strategies. A landscape marked by a potential 66% spike in premiums from major insurers in some states, alongside the expiration of federal subsidies, could significantly heighten out-of-pocket costs. Many companies, including Jacobs, are likely to shift more healthcare expenses onto employees through higher deductibles and copays, compounding financial pressure amidst rising medical expenses across the board. Understanding these changes will be crucial for employees looking to navigate their healthcare options effectively. Click here to learn more

'Jacobs Engineering Group employees navigating California’s high property taxes should view the new SALT deduction cap as an opportunity to revisit whether itemizing or taking the standard deduction provides the most benefit, and making that comparison now can help them plan ahead with greater clarity.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Jacobs Engineering Group employees and retirees should recognize that the higher SALT deduction cap creates a chance to reevaluate household tax strategies, but the true value will depend on income thresholds, property taxes, and whether itemized deductions outweigh the standard deduction.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. How the 2025 spending bill changes the SALT deduction cap for California homeowners.

2. The impact of Proposition 13, income thresholds, and itemized deductions on potential savings.

3. What Jacobs Engineering Group employees and retirees should consider when comparing itemized deductions versus the standard deduction.

With the passage of the 2025 One Big Beautiful Bill Act, the cap on state and local tax (SALT) deductions increased, positioning millions of taxpayers nationwide to see relief on their federal tax returns. With some of the largest state and local tax burdens in the nation, California homeowners—including many Jacobs Engineering Group employees—will be especially affected by the shift. Still, it's unclear how much Californians could save.

Before 2017, the entire amount of state and local taxes paid could be subtracted from a taxpayer's federal taxable income. With the 2017 Tax Cuts and Jobs Act, which set a $10,000 deduction cap, this was altered. ¹  Residents in high-tax areas like California, where taxes and property values often exceed national norms, were disproportionately impacted by the cap, creating challenges for Jacobs Engineering Group families with significant home values.

Potential Savings

Although the ceiling is not completely removed by the new 2025 legislation, it is replaced with an income-based cap that permits deductions of up to $40,000, contingent on a taxpayer's earnings. ²  The change may give many homeowners a meaningful advantage, but the benefits may differ depending on income, house value, and mortgage balance, according to Kevin Won of Wealth Enhancement's California office, which frequently works with Jacobs Engineering Group employees.

The deduction power that Californians in high-tax districts lost in 2017 could now be partially restored, according to Won. 'But under the new income thresholds, people with higher incomes might still see their SALT benefit phased out.' This is particularly relevant for Jacobs Engineering Group retirees and mid-career employees navigating compensation and property costs in high-value regions.

Redfin data shows the possible savings. Instead of the $10,000 cap, the average California homeowner can now deduct about $26,000 in SALT payments. ³  This could result in a $4,000 decrease in federal taxes at a marginal tax rate of 24%. ³  However, not every taxpayer—including those in the Jacobs Engineering Group workforce—will qualify for the entire benefit.

Unequal Application

A significant factor in the outcome is California's distinct property tax structure, which was influenced by Proposition 13. Long-term homeowners frequently pay lower property taxes than new buyers because Proposition 13 restricts annual increases in property tax assessments. According to Won, 'many Californians will not see the same percentage savings as newer buyers or residents of other states because Proposition 13 keeps long-term homeowners’ property taxes artificially low,' an important distinction for Jacobs Engineering Group employees with decades of homeownership.

The extended deduction may help around three-quarters of California homeowners, according to research. ³  But the only people who are likely to see major tax reductions are those who have large itemized deductions that surpass the standard deduction threshold. For many Jacobs Engineering Group professionals, the standard deduction might still be the better choice depending on their household situation.

Won suggested, 'It's still wise to run the numbers. To find out which approach works best, compare your new itemized deductions to the standard deduction.' Jacobs Engineering Group families approaching retirement may want to evaluate both options carefully.

Understanding the Nuances

In the end, the increased SALT cap gives Californians more flexibility, but the effects will differ greatly. 'It's a positive change, especially for upper-middle-income homeowners,' Won summed up. However, the impact may be minimal for long-term property owners or retirees with lower property taxes and smaller mortgages, a scenario that may apply to Jacobs Engineering Group retirees who have owned property for decades.

There is one important change: taxpayers 65 and older may claim an extra $6,000 tax deduction for tax years 2025–2028, regardless of whether they itemize. ⁴  Phase-outs begin at $75,000 of income for single filers and $150,000 for joint filers. ⁴  Together with the increased SALT cap modification, this senior deduction may expand older homeowners' tax relief—something Jacobs Engineering Group retirees should pay particular attention to.

Find out how California homeowners will be affected by the 2025 increase in the state and local tax (SALT) deduction cap. Typical property owners might save almost $4,000 in federal taxes under the new law, which increases the threshold from $10,000 to an income-based ceiling of up to $40,000. Discover why newer owners in high-tax districts may benefit the most, as well as how eligibility is influenced by Proposition 13, mortgage amounts, and itemized versus standard deductions, which are key considerations for many Jacobs Engineering Group employees.

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California's recent SALT deduction extension is comparable to reopening a long-blocked road lane. The 2017 limits forced traffic into fewer lanes for years, which reduced mobility and caused congestion. A portion of that lost lane has been reopened by the 2025 amendments, which permit deductions of up to $40,000, potentially reducing thousands of dollars in federal taxes. Similar to the freeway's continued speed limitations and restrictions, Proposition 13, income requirements, and itemized deduction laws limit the amount of benefit that homeowners may actually receive, making it easier for some but not for others—including many in the Jacobs Engineering Group workforce.

Sources:

1. Congress.gov. ' The SALT Cap: Overview and Analysis .' 3 Apr. 2025.

2. Bipartisan Policy Center. “ SALT Deduction Changes in the One Big Beautiful Bill Act ,” by Fredrick Hernandez, 30 July 2025.

3. Redfin News. “ Homeowners in New York, California and Other Coastal States Could Shave Thousands Off Their Annual Tax Bill with SALT Cap Increase ,' by Mark Worley, Asad Khan. 18 Sept. 2025.

4. IRS. ' One, Big, Beautiful Bill provisions: Deduction for Seniors (Sec. 70103) '. 2025.