Excludes tips from gross income and wages for tax purposes.
This bill modifies California's Personal Income Tax Law to exclude tips from gross income and wages for tax purposes. It also changes the definition of "wages" to exclude tips. Employers must report wages but not tips. Employees must report tips in writing if they exceed $20 per month. The bill applies to taxable years beginning on or after January 1, 2026, and before January 1, 2031.
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