KS SB277

Qualified tips received by workers in traditionally tipped occupations would be exempt from Kansas state income tax beginning January 1, 2026

Annual exemption capped at $25,000 per individual ($25,000 per spouse for married couples filing jointly)

"Qualified tips" includes cash tips, tips from tip-sharing arrangements, and credit/debit card tips distributed by employers, but excludes tips for employees earning over the highly compensated employee threshold from that employer

Secretary of Revenue required to publish a list of occupations that traditionally received tips as of December 31, 2024 within 90 days of enactment

Amends K.S.A. 2024 Supp. 79-32,117 governing Kansas adjusted gross income calculations