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

Plain English Breakdown

The official source material does not provide details on when the rule will start or how it interacts with other tax rules.

Tax Break for Tips

This bill creates a new rule that allows people who receive tips to subtract those tips from their taxable income.

What This Bill Does

• Creates a personal income tax deduction for the amount of tips or gratuities declared by taxpayers.

Who It Names or Affects

• People who earn money from tips and gratuities
• Taxpayers who report their tip earnings to the government

Terms To Know

Personal Income Tax Deduction

A reduction in the amount of income that is taxed, allowing people to pay less tax.

Tips or Gratuities

Money given by customers to workers as a reward for good service.

Limits and Unknowns

• Does not specify when the new rule will start.
• Does not explain how this deduction affects other tax rules.

Official Summary Text

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

Current Bill Text

LCO No. 1009 1 of 1

General Assembly Proposed Bill No. 5192
February Session, 2026 LCO No. 1009

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
REP. BUMGARDNER, 41st 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 a 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 a taxable year.