Delaware HB386 allows a subtraction from taxable income for qualified tips for certain taxpayers from 2027 to 2029.
Delaware HB386, known as the Tipped Worker Tax Relief Act of 2026, amends Title 30 of the Delaware Code to allow a subtraction from taxable income for qualified tips for eligible recipients. For taxable years starting after December 31, 2026, and before January 1, 2030, a resident or non-resident individual may subtract up to $15,000 of qualified tips from Delaware taxable income. The subtraction phases out based on filing status and federal adjusted income. The Department of Finance may create regulations for businesses where employees routinely receive tips.
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