Virginia Senate Bill 694: Income tax, state; subtractions for tips.

Virginia · 2026 Regular Session

What it does

Individual income tax subtractions; tips. Establishes an individual income tax subtraction for income attributable to tips in an amount equal to (i) 25 percent of the federal tip income deduction for taxable year 2026 and (ii) 50 percent of the federal tip income deduction in taxable year 2027 and thereafter.

Latest action

Continued to next session in Finance and Appropriations (9-Y 4-N) (2026-01-28)

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