Bill > HB282

This bill creates a new tax deduction for tipped employees in Hawaii, allowing them to deduct the total amount of tips they receive during a taxable year from their gross income. The deduction specifically applies to tips that are reported to the employer for Federal Insurance Contribution Act (FICA) purposes. A "tipped employee" is defined as someone who receives more than $30 per month in gratuities, and "tips" are described as voluntary monetary contributions received from guests, patrons, or customers. The director of taxation will be responsible for creating the necessary forms for claiming this deduction and may require proof of the claimed tips. The bill will take effect for taxable years beginning after December 31, 2025, meaning taxpayers can first claim this deduction on their 2026 tax returns. This legislation aims to provide financial relief for workers in service industries who rely on gratuities as a significant part of their income.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=282&year=2026