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ROCKFORD, Ill. (WTVO) — Rockford State Rep. Dave Vella (D) has introduced legislation in the Illinois Statehouse that would end taxes on tips.

Vella’s HB792, or the "No Tax on Tips" bill, would create a state income tax deduction equal to the total tip amount earned.

“This is an idea that has gained attention from both sides of the aisle on the national level, and I think it makes a lot of sense to pursue here in Illinois,” Vella said. “Our tipped workforce has historically faced disadvantages, often seeing lower pay to begin with and greater instability with the economy. Let’s choose to prioritize and help our hardworking tipped employees keep more of what they rightfully earned.”

President Donald Trump campaigned on ending taxes on tips, and said he would introduce legislation at the federal level.

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March 20, 2025 at 06:29PM