Missouri HB2173 modifies income tax provisions for tips received by tipped employees.

Missouri HB2173 amends the state's income tax code to exempt 100% of tips received by tipped employees from state income tax starting from January 1, 2027. This change applies to tipped employees in occupations that customarily and regularly receive tips. The bill also specifies that there will be no requirement for employer withholding on these tips, except as required by federal law. The definitions of "tip" and "tipped employee" are aligned with federal regulations under the Fair Labor Standards Act.

Missouri HB2173 modifies income tax provisions for tips received by tipped employees.

Missouri HB2173 amends the state's income tax code to exempt 100% of tips received by tipped employees from state income tax starting from January 1, 2027. This change applies to tipped employees in occupations that customarily and regularly receive tips. The bill also specifies that there will be no requirement for employer withholding on these tips, except as required by federal law. The definitions of "tip" and "tipped employee" are aligned with federal regulations under the Fair Labor Standards Act.