Bill > AB2533

This bill, effective immediately as a tax levy, amends California's Personal Income Tax Law to exclude certain employer-provided fitness benefits from an employee's gross income, meaning these benefits will not be taxed. Starting January 1, 2026, "qualified fitness benefits" will be tax-free, and this category includes payments or reimbursements for gym memberships, participation in fitness programs like yoga or exercise classes, and even wearable fitness trackers if part of an employer's wellness program. However, this exclusion does not apply to memberships in social or athletic clubs like country clubs, nor does it cover expenses for travel, meals, or lodging related to fitness activities. The bill also includes provisions for reporting on the number of taxpayers who utilize this exclusion to assess its effectiveness in promoting a healthier workforce and reducing healthcare costs.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2533