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State Assembly passes ‘no tax on tips’
The bill allows deductions on cash and charged tips up to $25,000 annually, aiming to ease tax burdens on tipped workers through 2028 if signed into law.
- On Jan. 15, 2026 the Wisconsin State Assembly passed Republican-authored bills to eliminate state income taxes on tips and exempt part of overtime pay, mirroring recent federal tax changes.
- Following a federal tax provision that took effect last year, Democratic Gov. Tony Evers had earlier included a no-tax-on-tips provision in his 2025-27 state budget, prompting Wisconsin Republicans to pursue similar exemptions.
- Rep. Paul Melotik introduced the overtime deduction that would allow $12,500 for single filers and $25,000 for joint filers, with reported Assembly vote tallies of 61-35 and 61-33.
- Tipped and overtime-earning workers would see boosted pay for bartenders, servers and plant workers, and Assembly Speaker Robin Vos said `These changes would put hundreds of dollars back into workers' pockets each year`; officials cautioned the Department of Revenue must update tax forms and tax software.
- With different expiration rules, the bills still need Wisconsin State Senate approval, and Gov. Tony Evers expressed interest in a more 'universal' tax relief policy.
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12 Articles
12 Articles
APG of Wisconsin+3 Reposted by 3 other sources
Wisconsin Assembly passes bills to exempt tips and overtime from taxes
The Wisconsin Assembly — seeking to align state policy with Trump administration initiatives — passed bills Thursday to exempt overtime pay and tips from income tax. Lawmakers also passed bills to make English the official language of the state as…
Coverage Details
Total News Sources12
Leaning Left3Leaning Right0Center5Last UpdatedBias Distribution62% Center
Bias Distribution
- 62% of the sources are Center
62% Center
L 38%
C 62%
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