Bill > SB36

This bill creates a new provision in Wisconsin state income tax law, allowing individuals to subtract or deduct certain cash tips from their taxable income for taxable years beginning after December 31, 2024, and before January 1, 2029. This subtraction is limited to "qualified tips," which are defined by federal law (specifically, section 224(d) of the Internal Revenue Code). For individuals who are not full-year residents of Wisconsin, the deductible amount is prorated based on the portion of their qualified tips that are taxable by Wisconsin. This change is made by adding a new subsection to section 71.05 of the statutes and amending section 71.52 (6) to include this new subtraction when calculating "income" for tax purposes, particularly for homestead credit claims.

Budget and Finance

https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb36