Bill > SB560

This bill creates a new income tax subtraction for tips in Oregon, allowing taxpayers to subtract the amount of tips they have properly reported as wages on their federal income tax return from their federal taxable income. The tax subtraction will apply to tax years beginning on or after January 1, 2026, and before January 1, 2032, which means it is a time-limited provision. Specifically, the bill will be added to Oregon Revised Statutes (ORS) Chapter 316, which covers state income tax regulations. The bill will take effect 91 days after the 2025 regular session of the Oregon Legislature adjourns sine die (a legal term meaning the session ends without setting a day to reconvene). By allowing this subtraction, the bill aims to provide a tax benefit to workers who receive tips, effectively reducing their state income tax liability by excluding tip income from their taxable income.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB560