Legislation

This bill, for taxable years beginning on or after January 1, 2026, would exclude tips, as defined, from gross income for the purposes of the Personal Income Tax Law. This bill also would exclude tips from the definition of wages paid for employment for purposes of income tax withholding and for purposes of unemployment insurance and the employment training tax. This bill would also make related changes to other provisions.

This bill would exempt from taxation, property owned by, and that constitutes the principal place of residence of, a veteran, the veteran’s spouse, or the veteran and the veteran’s spouse jointly, if the veteran is 100% disabled. The bill would provide an unmarried surviving spouse a property exemption in the same amount that they would have been entitled to if the veteran was alive and if certain conditions are met.