Congressional Salary and Tax Act of 1989

Congressional Salary and Tax Act of 1989 - Title I: Amendments Relating to Pay, Honoraria, and Related Matters - Amends the Legislative Reorganization Act of 1946 to revise the pay system for Members of Congress. Allows Members to elect their rate of pay to be: (1) the rate payable on the date of enactment of this Act; (2) the rate recommended by the Commission on Executive, Legislative, and Judicial Salaries; or (3) a rate higher than the rate payable on the date of enactment of this Act, but lower than that recommended by the Commission.

Amends the Federal Salary Act of 1967 to require the Commission to submit to the Congress its review of executive, legislative, and judicial salaries.

Provides that the recommendations of the Commission relating to executive and judicial salaries shall become effective on January 1 of the fiscal year in which the Commission conducts its review.

Provides that the recommendations of the President with respect to Member salaries shall be of an advisory nature only.

Amends the Supplemental Appropriations Act, 1983 to prohibit Members of Congress or legislative branch employees from accepting honoraria.

Amends the Pay Comparability Act of 1970 and the Legislative Branch Appropriations Act, 1988 to provide for adjusting the pay of congressional personnel in accordance with the base rates payable to Members.

Directs the Commission on Executive, Legislative, and Judicial Salaries appointed after enactment of this Act to study and report to the Congress on the need for establishing a Senior Congressional Service, similar to the Senior Executive Service in the executive branch.

Title II: Tax Treatment of Member Expenses - Amends the Internal Revenue Code to repeal the current $3,000 limit on the deductibility of the living expenses incurred by Members while living away from their State or congressional district.