Bill > HB282

This bill introduces a new tax deduction for tipped employees in Hawaii, allowing them to deduct the total amount of tips they received during a taxable year from their gross income. The deduction applies specifically to tips reported to an employer for Federal Insurance Contribution Act (FICA) purposes, and is available to employees who receive more than $30 per month in gratuities. Under the proposed law, tips are defined as voluntary monetary contributions received from guests, patrons, or customers. The director of taxation would be responsible for creating the necessary forms for claiming this deduction and may require proof of the claimed tips. The tax deduction would become applicable for taxable years beginning after December 31, 2025, providing a potential financial benefit for workers in service industries who rely on tips as a significant part of their income.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=282&year=2025