Bill > SB1241

This bill modifies the Missouri income tax code to create a new tax deduction for workers in tip-based occupations, specifically allowing individuals to subtract the first $25,000 of tipped income from their state taxable income starting in tax year 2026. The bill defines "tipped income" as cash gratuities received by individuals in occupations that customarily receive tips, and requires the Department of Revenue to publish a list of such qualifying occupations. This deduction is part of a broader section of Missouri tax law that details various additions and subtractions from federal adjusted gross income for state tax calculation purposes. The provision aims to provide financial relief for workers in service industries like restaurants, bars, and other sectors where tips are a significant part of compensation, potentially reducing the state tax burden for these workers by allowing them to exclude a substantial portion of their tip earnings from state income tax calculations.

Labor and Employment

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=608