'Every dollar counts,' server says as state mulls tax break for tips, overtime
Jan 13, 2026
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.The propos
al comes as President Trump's tax cuts have already eliminated federal taxes on tips and overtime for certain workers. Under the federal law, tipped workers can deduct $25,000, while overtime workers can deduct $12,500 but only for a portion of overtime pay, specifically the "half" in time-and-a-half compensation."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," Vos said. "I think that's a great idea."Vos expects the legislation to be introduced in January and expressed optimism about its passage."I think that'll pass, and god willing, Governor Evers would sign that," Vos said.For workers like Halana, who started at Pop City Gourmet Popcorn in downtown Milwaukee a few months ago, the additional income from tips helps fund her college education plans for fall.Watch: 'Every dollar counts,' server says as state mulls tax break for tips, overtime Wisconsin considers eliminating state taxes on tips and overtime"It's just an additional kind of earning that we can get," Halana said.She emphasized how every dollar counts for young workers trying to pay for their education."The more money we can take home and keep in our pockets, the better," Halana said.However, opponents argue that the tax breaks don't address the underlying issues of low minimum wages and the need for higher hourly pay rates. https://www.epi.org/blog/increase-the-minimum-wage-forget-no-tax-on-tips/Governor Tony Evers, who outlined his priorities for 2026 on Monday, remained cautiously open to the proposal when asked by TMj4's Charles Benson about Vos's plan."Possibly. I'm willing to take a look at that, but we are also making sure it's not just that," Evers said.Evers has encouraged the Republican-controlled legislature to pass his $1.3 billion property tax relief proposal as part of broader tax reform discussions.For workers like Halana, the potential state tax elimination represents meaningful financial relief."I think that it would definitely help families," Halana said.This story was reported on-air by Charles Benson and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.Its about time to watch on your time. Stream local news and weather 24/7 by searching for TMJ4 on your device.Available for download on Roku, Apple TV, Amazon Fire TV, and more.Report a typo or error
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