Eliminating income tax on qualified tipped wages

Senate Bill 549 creates a state tax deduction for West Virginia residents who receive and report tips to their employers. It allows tipped workers to deduct qualified tips (cash, card, or check payments received in employment) from their taxable income, effectively eliminating state income tax on those earnings. The deduction applies only to tips not already deductible for federal tax purposes and is available regardless of the tax return form filed. The provision takes effect for tax years beginning January 1, 2026.