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flag A bipartisan Wisconsin bill to exempt cash tips from state income tax passes Assembly, heads to Senate, and could take effect in July 2026.

flag A bipartisan bill to exempt cash tips from Wisconsin’s state income tax has passed the Assembly and is now before Governor Tony Evers. flag Assembly Bill 38, supported by both parties, would align state law with federal changes that eliminated income tax on tips starting in 2023. flag The measure would allow workers to keep more of their tip earnings, with no job restrictions or expiration date. flag The state Department of Revenue estimates the change could save workers up to $100 million annually. flag The bill is expected to move to the Senate before reaching the governor for a final decision. flag If signed, it would take effect in July 2026.

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