summary
Introduced
01/15/2025
01/15/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax deduction for gratuities that are included in the taxpayer's federal adjusted gross income. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create a tax deduction for gratuities (tips) that are included in a taxpayer's federal adjusted gross income. Specifically, for tax years beginning on or after January 1, 2026, the bill allows individuals to subtract the amount of gratuities from their taxable income when calculating their Illinois state income tax. The bill defines "gratuities" using the meaning provided in Section 3 of the Minimum Wage Law. This means that tips received by workers, such as restaurant servers, bartenders, and other service industry employees, can be excluded from state income tax calculations. The provision is designed to provide some tax relief for workers who rely on tips as a significant portion of their income, potentially reducing the overall tax burden for these employees.
Committee Categories
Budget and Finance
Sponsors (12)
Ryan Spain (R)*,
Amy Elik (R),
Jackie Haas (R),
Norine Hammond (R),
Nicole La Ha (R),
Tony McCombie (R),
Marty McLaughlin (R),
Jennifer Sanalitro (R),
Kevin Schmidt (R),
Brandun Schweizer (R),
Joe Sosnowski (R),
Patrick Windhorst (R),
Last Action
Added Chief Co-Sponsor Rep. Norine K. Hammond (on 01/21/2026)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1383&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1383.htm |
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