AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

HB 5728 (2025) would allow taxpayers who receive tips or gratuities to deduct the full amount they declared on their tax returns from their personal income tax. This bill directly affects workers in service industries (like restaurants or hospitality) who earn tips, as it would reduce their taxable income by the amount of tips they report. The key provision amends tax law to explicitly create this deduction, making it easier for these workers to lower their tax burden. The bill focuses on a concrete policy change in how tip income is treated for tax purposes, without altering other tax rules.