California AB2533 allows a tax exclusion and deduction for employer-provided fitness benefits.

California AB2533 introduces a tax exclusion and deduction for employer-provided fitness benefits, effective from January 1, 2026. The exclusion removes up to $600 of fitness benefits from gross income for state personal income tax purposes. The deduction allows a reduction in adjusted gross income for fitness benefits provided by employers. Benefits include fees or dues for fitness center memberships and expenses for fitness or physical activity programs. The Franchise Tax Board must report annually on the number of taxpayers claiming these benefits.

California AB2533 allows a tax exclusion and deduction for employer-provided fitness benefits.

California AB2533 introduces a tax exclusion and deduction for employer-provided fitness benefits, effective from January 1, 2026. The exclusion removes up to $600 of fitness benefits from gross income for state personal income tax purposes. The deduction allows a reduction in adjusted gross income for fitness benefits provided by employers. Benefits include fees or dues for fitness center memberships and expenses for fitness or physical activity programs. The Franchise Tax Board must report annually on the number of taxpayers claiming these benefits.