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A bipartisan Wisconsin bill to exempt cash tips from state income tax passes Assembly, heads to Senate, and could take effect in July 2026.
A bipartisan bill to exempt cash tips from Wisconsin’s state income tax has passed the Assembly and is now before Governor Tony Evers.
Assembly Bill 38, supported by both parties, would align state law with federal changes that eliminated income tax on tips starting in 2023.
The measure would allow workers to keep more of their tip earnings, with no job restrictions or expiration date.
The state Department of Revenue estimates the change could save workers up to $100 million annually.
The bill is expected to move to the Senate before reaching the governor for a final decision.
If signed, it would take effect in July 2026.
Un proyecto de ley bipartidista de Wisconsin para eximir las propinas en efectivo del impuesto sobre la renta estatal pasa la Asamblea, se dirige al Senado y podría entrar en vigor en julio de 2026.