Many states have their own standard deduction but also tie state taxes to the federal itemized deductions. Taxpayers are generally required to use the state standard deduction if they use the federal standard deduction. For people who itemize on their federal taxes, states often require an adjustment for state income taxes but allow the full deduction of state and local real estate and personal property taxes. Without compensating changes in state law, in 2018, the higher federal standard deduction and the $10,000 cap on SALT items are going to increase a filer’s state income tax obligation by either requiring the use of the lower state standard deduction or preventing the deduction of a portion of your real estate taxes. State governments will be under pressure to fix what otherwise would be a Republican state tax increase.