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Committee advances bill to conform California law to new federal treatment of tipped income

California State Senate Committee on Revenue and Taxation · May 6, 2026
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Summary

SB 984 would conform California tax law to the recent federal deduction for tipped income, allowing a deduction for tipped income through 2028; the committee advanced the bill to the Appropriations Committee with bipartisan support from restaurant and taxpayer groups.

Senator Ochoa Bote presented SB 984, a measure to conform California tax law to a new federal deduction for tipped income enacted at the federal level. The author framed the bill as a bipartisan measure to provide tax relief to tipped…

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