Madison, WI – Today, Representative Cindi Duchow (R–Delafield) voted with her Republican Assembly colleagues to end the tax on tips and overtime payments. The package of bills, including AB 38 and AB 461, passed the Assembly chamber with bipartisan support.
“Hard-working Wisconsinites deserve to be rewarded for providing excellent customer service and working overtime,” said Rep. Duchow. “Fixing the tax on tips and overtime shows Wisconsinites that their work will not go unrecognized.”
AB 38 creates an income tax exemption for cash tips received by an employee. This bill aligns Wisconsin law with new federal standards and provides meaningful tax relief so Wisconsinites can keep more of what they earn.
AB 461 restructures how overtime is taxed. Workers will be able to subtract up to $12,500 of overtime earnings for individual filers, or $25,000 for married joint filers. Those who choose to pick up an extra shift will no longer be disincentivized from doing so.
The package of bills awaits consideration by the State Senate.
