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

Plain English Breakdown

The effective date is not provided in the source material.

Personal Income Tax Deduction for Tips

This bill creates a tax deduction of up to $25,000 for taxpayers who report tips or gratuities while working in jobs listed by the IRS as customarily receiving them.

What This Bill Does

• Amends Title 12 of the general statutes to add a new personal income tax rule.
• Allows taxpayers to deduct reported tips or gratuities from their taxable income up to $25,000.
• Applies only to workers in occupations listed by the Internal Revenue Service as customarily and ordinarily receiving tips.

Who It Names or Affects

• Taxpayers employed in jobs that are listed by the IRS as usually receiving tips or gratuities.

Terms To Know

Personal income tax deduction

An amount subtracted from a person's total taxable income, which lowers the taxes they owe.

Gratuities

Money given voluntarily to workers for services provided, often called tips.

Limits and Unknowns

• The bill does not state when this law will take effect.
• The text relies on the Internal Revenue Service list of occupations but does not name specific jobs in the document itself.

Official Summary Text

To establish a personal income tax deduction of up to twenty-five thousand dollars for the amount of tips or gratuities declared by a taxpayer employed in certain occupations.

Current Bill Text

LCO No. 298 1 of 1

General Assembly Proposed Bill No. 47
February Session, 2026 LCO No. 298

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. BERTHEL, 32nd 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 title 12 of the general statutes be amended to establish a personal 1
income tax deduction of up to twenty -five thousand dollars for the 2
amount of tips or gratuities declared by a taxpayer employed in an 3
occupation listed by the Internal Revenue Service as customarily and 4
ordinarily receiving tips. 5
Statement of Purpose:
To establish a personal income tax deduction of up to twenty -five
thousand dollars for the amount of tips or gratuities declared by a
taxpayer employed in certain occupations.