California SB17 allows a tax deduction for tips up to $20,000 for certain workers from 2026 to 2035.

California SB17 amends the Internal Revenue Code to allow a deduction from gross income for qualified tips, up to $20,000, for qualified taxpayers from 2026 to 2035. A qualified taxpayer must work in an occupation receiving more than $20 monthly in tips, not hold a professional license except for barbering or cosmetology, and have an adjusted gross income under $250,000 for heads of household or surviving spouses, or $125,000 for others. The Franchise Tax Board must report on the number of taxpayers using this deduction and the average dollar value of tips deducted by December 1, 2036.

California SB17 allows a tax deduction for tips up to $20,000 for certain workers from 2026 to 2035.

California SB17 amends the Internal Revenue Code to allow a deduction from gross income for qualified tips, up to $20,000, for qualified taxpayers from 2026 to 2035. A qualified taxpayer must work in an occupation receiving more than $20 monthly in tips, not hold a professional license except for barbering or cosmetology, and have an adjusted gross income under $250,000 for heads of household or surviving spouses, or $125,000 for others. The Franchise Tax Board must report on the number of taxpayers using this deduction and the average dollar value of tips deducted by December 1, 2036.