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Bills › 91st General Assembly

HF 361Died when the session ended · February 12, 2025

Exempting cash tips from the individual income tax, and including applicability provisions

Sponsored by Rep. Jeff Cooling (D)

Topics:TaxesIncome taxes

Write your legislators about it
Official bill pageLobbyist declarationsOne-pager to print

Where it is now

  1. Done: IntroducedFebruary 12, 2025
  2. Stopped: SubcommitteeDied when the General Assembly ended
  3. Next: House committeeFunnel: by February 20, 2026
  4. Next: Passes the House
  5. Next: Senate committeeFunnel: by March 20, 2026
  6. Next: Passes the Senate
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

AI summary Starting in 2026, people who receive cash tips will not have to pay state income tax on that money. This change applies to any tips that are reported to an employer on official statements.1

Read the official explanation

This bill excludes from the individual income tax the amount of cash tips received and included on statements furnished to an employer as required by section 6053(a) of the Internal Revenue Code. The bill applies to tax years beginning on or after January 1, 2026.

Full bill text2

Iowa Code it changes

Amends§422.7

How the Code works3

Lobbying

0 for · 0 against · 2 undecided · Who →

Similar bills

  • HF 268 Exempting cash tips from the individual income tax, and including applicability provisions
    91st General Assembly · Renumbered as HF 1030
    Nearly identical
  • HF 293 Exempting cash tips from the individual income tax, and including applicability provisions
    91st General Assembly · In committee
    Nearly identical

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