Bill > SB0140

This bill amends the Illinois Income Tax Act to create a new income 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 state income tax. The term "gratuities" is defined according to the Minimum Wage Law, which typically refers to voluntary monetary contributions given to service workers in addition to the base price of a service. By creating this deduction, the bill aims to provide some tax relief for workers who rely on tips as a significant part of their income, such as restaurant servers, bartenders, taxi drivers, and other service industry employees. The deduction would effectively reduce the amount of state income tax owed by these workers by lowering their taxable income by the amount of tips they received during the year.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=140&GAID=18&DocTypeID=SB&SessionID=114&GA=104