HI HB575

Creates a new state income tax deduction allowing tipped employees to deduct the full amount of tips received during the taxable year from their gross income

Defines "tipped employee" as someone who receives more than $30 per month in gratuities from guests, patrons, or customers

Tips must be reported to the employer for Federal Insurance Contribution Act (FICA) purposes to qualify for the deduction

Directs the Department of Taxation to prepare necessary forms and may require proof of claims for the deduction

Applies to taxable years beginning after December 31, 2025