Many Pennsylvania workers, in fields like hospitality, food service, barbershops and hair/nail salons, rely heavily on tips for their income. Tips often make up a significant portion of their overall earnings. With tips being taxed, this leads to a reduction in their take-home pay. In many cases, these workers are already earning lower base wages that are supplemented by tips. Taxing tips further burdens them, exacerbating income inequality for workers who depend on these tips to support themselves and their families.
 
Tips are often distributed unevenly, with some workers receiving far more than others based on customer preferences or the nature of their job. Taxing tips disproportionately affects lower-wage employees who might not have access to higher-paying positions or larger tips. The taxation of tips may exacerbate inequalities within service-based industries, where workers with less financial stability face more financial strain from these taxes.
 
Under my legislation, tips would still be subject to payroll taxes, but they would not be subject to income taxes.

​Please join me in co-sponsoring this legislation.

Statutes/Laws affected:
Printer's No. 1726 (May 14, 2025): P.L.6, No.2