AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

Plain English Breakdown

The official source material does not provide information on whether or not other parts of the personal income tax law are changed by this act.

Tax Break for Tips

This act allows people who receive tips to deduct those tips from their taxes.

What This Bill Does

• Creates a new tax rule that lets people take money off their income tax if they got tips or gratuities.
• Applies the deduction only to the amount of tips declared by taxpayers for the year.

Who It Names or Affects

• People who earn tips as part of their job, like waiters and bartenders.

Terms To Know

Tax deduction

A reduction in the amount of money a person has to pay in taxes.

Tips or gratuities

Extra money given by customers to workers for good service, often left on a table at restaurants.

Limits and Unknowns

• The bill does not specify when the new deduction will start.
• It is unclear how much tax revenue this change might affect.

Official Summary Text

To establish a personal income tax deduction for the amount of tips or gratuities declared by a taxpayer for the taxable year.

Current Bill Text

LCO No. 378 1 of 1

General Assembly Proposed Bill No. 5057
February Session, 2026 LCO No. 378

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. BRONKO, 70th Dist.

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION
FOR TIPS OR GRATUITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That section 12-701 of the general statutes be amended to establish a 1
personal income tax deduction for the amount of tips or gratuities 2
declared by a taxpayer for the taxable year. 3
Statement of Purpose:
To establish a personal income tax deduction for the amount of tips or
gratuities declared by a taxpayer for the taxable year.