Exempts cash tips from individual income tax starting January 1, 2026.

This bill amends Iowa's individual income tax to exclude cash tips from taxable income. Specifically, it subtracts the amount of cash tips reported to employers as required by the Internal Revenue Code. The change applies to tax years beginning on or after January 1, 2026.

Exempts cash tips from individual income tax starting January 1, 2026.

This bill amends Iowa's individual income tax to exclude cash tips from taxable income. Specifically, it subtracts the amount of cash tips reported to employers as required by the Internal Revenue Code. The change applies to tax years beginning on or after January 1, 2026.