WisconsinWisconsin taxpayers could subtract qualified tips from income
If it had taken effect, Wisconsin taxpayers could have subtracted certain qualified tips from income for tax years 2025 through 2028, while the subtraction counted as income for homestead credit claims.
What it does
Claimants could subtract qualified tips from Wisconsin income, up to the amount allowed on their federal return. Part-year residents and nonresidents are limited to tips taxable by Wisconsin.
For homestead credit claims, the qualified-tip subtraction would count as income.
Argument forEligible claimants could owe less Wisconsin income tax because the subtraction may reduce the income used to calculate their state tax.
Argument againstCounting the subtraction as income for homestead credit claims could lower the credit for some households with qualified tips.
More detail
A claimant could subtract qualified tips from Wisconsin income, up to the amount allowed on the claimant’s federal return. This applies to claimants who may deduct qualified tips on their federal return, including part-year residents and nonresidents. Qualified tips use the definition in the cited federal tax rule. For part-year residents and nonresidents, the subtraction is limited to the share of qualified tips taxable by Wisconsin. The subtraction would apply to tax years beginning after December 31, 2024, and before January 1, 2029.
The amount subtracted for qualified tips would count as income when calculating homestead credit claims. This applies when calculating income for a homestead credit claim. This income calculation would apply to claims filed for tax years beginning after December 31, 2024.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 13Failed to pass notwithstanding the objections of the Governor pursuant to Joint Rule 82Latest
- May 12Placed on calendar 5-12-2026 pursuant to Joint Rule 82 (2)(a)
- Apr 6Report vetoed by the Governor Tony Evers on 4-3-2026Major
- Apr 2Presented to the Governor on 4-2-2026To Governor
- Feb 25Report correctly enrolledMinor
- Feb 23Received from Assembly concurred inMinor
- Feb 19Ordered immediately messaged
- Vote recorded CONCURRENCE. Result: pass.Lower
- Feb 19Read a third time and concurred in, Ayes 60, Noes 31Passed House
- Feb 19Rules suspended
- Feb 19Ordered to a third readingMinor
- Feb 19Read a second timeMinor
- Feb 19Rules suspended to withdraw from Senate message and take up
- Feb 19Read
- Jan 22Received from SenateMinor
- Jan 21Ordered immediately messaged
- Vote recorded PASSAGE. Result: pass.Upper
- Vote recorded SHALL THE DECISION OF THE CHAIR STAND. Result: pass.Upper
- Jan 21Read a third time and passed, Ayes 21, Noes 12Passed Senate
- Jan 21Rules suspended to give bill its third reading
- Jan 21Ordered to a third readingMinor
- Jan 21Senate Substitute Amendment 4 adoptedMajor
- Jan 21Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15
- Jan 21Point of order that Senate Amendment 1 to Senate Substitute Amendment 4 was not germane well taken
- Jan 21Read a second timeMinor
- Jan 21Senate Amendment 1 to Senate Substitute Amendment 4 offered by Senators Hesselbein, Smith, Spreitzer, Drake, Carpenter, Dassler-Alfheim, Habush Sinykin, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Roys, Wall and WirchMinor
- Jan 16Placed on calendar 1-21-2026 pursuant to Senate Rule 18(1)
- Jan 15Representative Steffen added as a cosponsor
- Jan 14Available for scheduling
- Vote recorded Report introduction of Senate Substitute Amendment 4 by Joint Committee on Finance, Ayes 16, Noes 0. Result: pass.Upper
- Vote recorded Report passage as amended recommended by Joint Committee on Finance, Ayes 12, Noes 4. Result: pass.Upper
- Vote recorded Report adoption of Senate Substitute Amendment 4 recommended by Joint Committee on Finance, Ayes 12, Noes 4. Result: pass.Upper
- Jan 14Report passage as amended recommended by Joint Committee on Finance, Ayes 12, Noes 4Minor
- Jan 14Report adoption of Senate Substitute Amendment 4 recommended by Joint Committee on Finance, Ayes 12, Noes 4Major
- Jan 14Report introduction of Senate Substitute Amendment 4 by Joint Committee on Finance, Ayes 16, Noes 0
- Jan 14Executive action taken
- Jan 13Withdrawn from committee on Senate Organization and rereferred to joint committee on Finance pursuant to Senate Rule 46(2)(c)Minor
- 2025
- Nov 12Report of Joint Survey Committee on Tax Exemptions received, Ayes 5, Noes 4Minor
- Vote recorded Report of Joint Survey Committee on Tax Exemptions received, Ayes 5, Noes 4. Result: pass.Upper
- Oct 23Report of Joint Survey Committee on Tax Exemptions requested
- Sep 19Available for scheduling
- Vote recorded Report adoption of Senate Substitute Amendment 3 recommended by Committee on Agriculture and Revenue, Ayes 6, Noes 2. Result: pass.Upper
- Vote recorded Report passage as amended recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3. Result: pass.Upper
- Sep 19Report passage as amended recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3Minor
- Sep 19Report adoption of Senate Substitute Amendment 3 recommended by Committee on Agriculture and Revenue, Ayes 6, Noes 2Major
- Sep 18Executive action taken
- Sep 3Fiscal estimate receivedMinor
- Aug 18Senate Substitute Amendment 3 offered by Senator JacqueMinor
- Aug 7Senate Substitute Amendment 2 offered by Senator JacqueMinor
- Jul 2Representative Melotik added as a cosponsor
- Jun 9Senate Substitute Amendment 1 offered by Senator JacqueMinor
- May 21Public hearing held
- Feb 28Fiscal estimate receivedMinor
- Feb 18Representative Gustafson added as a cosponsor
- Feb 12Read first time and referred to Committee on Agriculture and RevenueMinor
- Feb 12Introduced by Senators Jacque, Bradley, Hutton, Cabral-Guevara, Feyen, Nass, Quinn and Tomczyk; cosponsored by Representatives Tusler, Behnke, Green, Gundrum, Kreibich, Maxey, Mursau, Penterman, Piwowarczyk, Tittl, Tranel and WichgersIntroduced
- Nov 12Report of Joint Survey Committee on Tax Exemptions received, Ayes 5, Noes 4Minor
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