Name: Wisconsin considers eliminating state taxes on tips and overtime
Uploaded: 2026-01-14T03:01:36.055Z
Duration: 2 min 33 s
Description: Wisconsin Assembly Speaker Robin Vos is pushing to eliminate state income taxes on tips and overtime pay, mirroring recent federal tax changes that could provide significant relief for service workers across the state.

Wisconsin Assembly Speaker Robin Vos is pushing to eliminate state income taxes on tips and overtime pay, mirroring recent federal tax changes that could provide significant relief for service workers across the state.

Wisconsin

Wisconsin legislators are considering a proposal to eliminate state income taxes on tips and overtime pay, following a recent federal law change that exempts these earnings for certain taxpayers. The measure, championed by Speaker Robin Voss, aims to provide financial relief to workers who rely on tips and overtime, such as those in the service industry.

Governor Tony Evers has expressed openness to reviewing the proposal but emphasized the need for broader economic measures. Critics argue that while the tax break could help workers, it does not address underlying issues such as low minimum wages. The proposal is expected to be discussed in the state legislature, with many watching to see if Wisconsin will align its tax policy with federal standards.

Wisconsin considers eliminating state taxes on tips and overtime

Good evening. The tax season is approaching and everyone is looking for a refund. One big change has to do with no tax on tips or overtime on your federal taxes for some taxpayers. Now a Republican leader is looking at extending that tax break to your state taxes. Our chief political reporter, Charles Benson, looks at the chances of it passing and what it means for tip employees like Halana. Tips are critical to employees who count on them. They can boost their yearly wages. Last year, federal law was changed to provide no tax on tips or overtime. Should Wisconsin follow? Halana started working at Pop City a few months ago. You can tap when you're ready. The income, including tips, will help when she goes back to school in the fall. What are the benefits of the tips for you as a young person looking to pay for college? It's just an additional earning that we can get. She says the tips from credit card purchases or the tip jar can add up to a bigger paycheck. The more money we can take home and keep in our pockets, the better. President Trump's tax cuts included no tax on tips or overtime for federal income taxes. Tip workers can deduct up to $25,000, overtime workers $12,500. But only for a portion of the OT, meaning the half in time and a half. Speaker Robin Voss wants to extend the tax breaks to state income taxes. I think that we need to say that if you are a hard worker and you put in overtime or you're a server and you get tips, you shouldn't pay income tax on that. I think that's a great idea. Voss expects the idea to come up in January. I think that will pass and, God willing, Governor Evers would sign that. Critics say the tax breaks don't address the real issue of low minimum wages and the need for higher hourly pay. So, it's a brand new year, folks. On Monday, Governor Evers outlined his top priorities for 2026. We can continue doing the right thing for the people of our state. Evers encouraged the Republican-controlled legislature to pass his $1.3 billion property tax relief proposal. We asked about Voss' no state tax on tips or overtime. Is that something you could buy into? Possibly. I'm willing to take a look at that, but we're also making sure that it's not just that. For now, Halana will be watching to see if state law will mirror federal law. In Milwaukee, Charles Benson, TMJ4 News.

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