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HB05010 • 2026

AN ACT EXEMPTING TIPS OR GRATUITIES AND OVERTIME PAY FROM THE PERSONAL INCOME TAX.

AN ACT EXEMPTING TIPS OR GRATUITIES AND OVERTIME PAY FROM THE PERSONAL INCOME TAX.

Labor Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rep. Vincent J. Candelora, 86th Dist.
Last action
2026-02-20
Official status
Public Hearing 02/27
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide details on the extent of the exemption for tips, gratuities, and overtime pay.

Act to Exclude Tips, Gratuities, and Overtime Pay from Income Tax

This act removes tips, gratuities, and overtime pay from being taxed as part of a person's income.

What This Bill Does

  • Exempts the amount of tips or gratuities declared by taxpayers from personal income tax.
  • Exempts overtime pay from personal income tax.

Who It Names or Affects

  • People who receive tips or gratuities as part of their job.
  • Workers who earn overtime pay.

Terms To Know

Personal Income Tax
A tax that individuals pay based on the money they earn.
Tips or Gratuities
Extra money given to workers, like waiters and bartenders, for good service.

Limits and Unknowns

  • The bill does not specify how much of these earnings will be exempt.
  • It is unclear if this act affects other types of income tax besides personal income tax.

Bill History

  1. 2026-02-20 Connecticut General Assembly

    Public Hearing 02/27

  2. 2026-02-13 FIN

    Reserved for Subject Matter Public Hearing

  3. 2026-02-04 Connecticut General Assembly

    Referred to Joint Committee on Finance, Revenue and Bonding

Official Summary Text

To exempt the amount of tips or gratuities declared by a taxpayer and overtime pay from the personal income tax.

Current Bill Text

Read the full stored bill text 
LCO No. 366 1 of 1

General Assembly Proposed Bill No. 5010
February Session, 2026 LCO No. 366

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. CANDELORA V., 86th Dist.
REP. O'DEA, 125th Dist.
REP. RUTIGLIANO, 123rd Dist.
REP. ACKERT, 8th Dist.
REP. ZUPKUS, 89th Dist.
REP. ZAWISTOWSKI, 61st Dist.
REP. CARNEY, 23rd Dist.

AN ACT EXEMPTING TIPS OR GRATUITIES AND OVERTIME PAY
FROM THE PERSONAL INCOME TAX.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That title 12 of the general statutes be amended to exempt the amount 1
of tips or gratuities declared by a taxpayer and overtime pay from the 2
personal income tax. 3
Statement of Purpose:
To exempt the amount of tips or gratuities declared by a taxpayer and
overtime pay from the personal income tax.