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PA SB1255
Bill
Status
3/30/2026
Primary Sponsor
Chris Gebhard
Click for details
AI Summary
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Excludes tips, gratuities, and voluntary customer payments from Pennsylvania personal income tax, whether received in cash, electronically, or by other methods
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Defines "tip" as a voluntary payment made by a customer to an employee or distributed through a tip-sharing arrangement, excluding employer-mandated base wages
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Prohibits reclassifying wages, service charges, or employer-mandated fees as tips to avoid taxation
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Requires the Department of Revenue to promulgate regulations to prevent fraud, misclassification, and improper reporting of wages as tips
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Takes effect 60 days after enactment, applying to the next fiscal year following the effective date
Legislative Description
In personal income tax, further providing for classes of income and providing for exclusion of tips from taxable income.
Last Action
Referred to Finance
3/30/2026