Michigan2026Active
HB4051
HB4051: Excluding Certain Tips from Income Tax
Last scannedAug 24, 2026, 10:53 AM
In one sentence
This bill proposes to change the state income tax law by allowing an exclusion for certain tips received by some employees.
What it does
- Amends section 30 of the Individual Income Tax Act (1967 PA 281).
- Provides for the exclusion of certain gratuities from individual income tax deductions.
Who it affects
- Tipped employees who may receive an exclusion for certain gratuities.
- The state system that collects individual income taxes in Michigan.
Limits and unknowns
- The official text does not define what 'certain gratuities' are or how much can be excluded.
- The bill has no effective date listed and is currently active but awaiting further steps.
- It is unclear which specific workers qualify as tipped employees under this proposal.
Official record
Sources
Official summary
Individual income tax: deductions; exclusion of certain gratuities for tipped employees; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).