KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Connecticut

HB05087 • 2026

AN ACT ESTABLISHING PERSONAL INCOME TAX DEDUCTIONS FOR TIPS OR GRATUITIES AND OVERTIME PAY.

AN ACT ESTABLISHING PERSONAL INCOME TAX DEDUCTIONS FOR TIPS OR GRATUITIES AND OVERTIME PAY.

Labor Taxes
Passed Legislature

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

Sponsor
Rep. Joe Hoxha, 78th Dist.
Last action
2026-02-09
Official status
Referred to Joint Committee on Finance, Revenue and Bonding
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on when the new tax deductions will be effective or how they exactly mirror federal tax rules.

Act to Allow Tax Breaks for Tips and Overtime

This act allows people who earn income from tips and overtime to deduct these earnings similarly to federal tax rules in their state taxes.

What This Bill Does

  • Creates a new rule that lets people deduct tips and gratuities from their personal income tax, similar to the federal tax system.

Who It Names or Affects

  • People who earn money from tips or gratuities
  • Workers who get paid overtime

Terms To Know

Personal Income Tax Deduction
A reduction in the amount of income that is taxed, which can lower how much tax a person has to pay.
Overtime Pay
Extra money paid to workers for hours worked beyond their regular work schedule.

Limits and Unknowns

  • The bill does not specify when the new rules will start.
  • It only applies to personal income tax and does not change other types of taxes.

Bill History

  1. 2026-02-09 Connecticut General Assembly

    Referred to Joint Committee on Finance, Revenue and Bonding

Official Summary Text

To establish personal income tax deductions that mirror the federal income tax deductions for tips or gratuities declared by a taxpayer and overtime pay.

Current Bill Text

Read the full stored bill text 
LCO No. 519 1 of 1

General Assembly Proposed Bill No. 5087
February Session, 2026 LCO No. 519

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. HOXHA, 78th Dist.

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

That chapter 229 of the general statutes be amended to establish 1
personal income tax deductions that mirror the federal income tax 2
deductions for tips or gratuities declared by a taxpayer and overtime 3
pay. 4
Statement of Purpose:
To establish personal income tax deductions that mirror the federal
income tax deductions for tips or gratuities declared by a taxpayer and
overtime pay.