The overall limit on itemized deductions that applied to higher-income taxpayers was repealed by the Tax Cuts and Jobs Act, and the following changes were made. (Unless otherwise noted, most provisions expire after 2025.) Itemized Deductions State and local taxes. The combined itemized deduction for state and local property taxes and state and local income taxes (or sales taxes in lieu of income) is limited to $10,000 ($5,000 if married filing separately) annually. Home mortgage interest. Qualified mortgage interest can be deducted on up to $750,000 of mortgage debt ($375,000 for married couples filing separately). The prior $1 million limit still applies for debt incurred on or before December 15, 2017. Interest on home equity loans is deductible only when the proceeds are used to acquire or substantially improve a home. Medical expenses. The AGI threshold for deducting unreimbursed medical expenses was permanently reduced from 10% to 7.5% by the Consolidated Appropriations Act, 2021. Charitable contributions. The top AGI limitation percentage that applies to deducting certain cash gifts to qualified charitable organizations was raised from 50% to 60%. Casualty and theft losses. The deduction for personal casualty and theft losses was eliminated, except for casualty losses suffered in a federally declared disaster area.