Hawaii HB567 allows a tax deduction for tips received by tipped employees.

Hawaii HB567 amends Chapter 235 of the Hawaii Revised Statutes to introduce a tax deduction for tips received by tipped employees. Tips are defined as gratuities or voluntary monetary contributions from guests, patrons, or customers reported to employers for the Federal Insurance Contribution Act. The deduction applies to employees earning more than $30 a month in gratuities. The director of taxation will prepare necessary forms, require proof of the claim, and adopt relevant rules. The amendment takes effect for taxable years beginning after December 31, 2025.

Hawaii HB567 allows a tax deduction for tips received by tipped employees.

Hawaii HB567 amends Chapter 235 of the Hawaii Revised Statutes to introduce a tax deduction for tips received by tipped employees. Tips are defined as gratuities or voluntary monetary contributions from guests, patrons, or customers reported to employers for the Federal Insurance Contribution Act. The deduction applies to employees earning more than $30 a month in gratuities. The director of taxation will prepare necessary forms, require proof of the claim, and adopt relevant rules. The amendment takes effect for taxable years beginning after December 31, 2025.