HI HB520

Excludes tips received by employees from Hawaii state gross income, adjusted gross income, and taxable income

Applies to tips that employees report to their employers for federal Social Security tax purposes (under 26 U.S.C. section 3102)

Defines "tipped employee" as someone who receives more than $30 per month in gratuities

Authorizes the director of taxation to prepare necessary forms, require evidence from taxpayers, and adopt administrative rules

Takes effect for taxable years beginning after December 31, 2025