WeVote
Log In

Bill

Bill

H 3251

An Act to exclude tipped wages from taxable income

194th Legislature (2025-2026) Introduced by Joe McKenna and 4 co-sponsors

Bill H 3251 excludes tipped wages from taxable income in Massachusetts, boosting take-home pay for service workers like waitstaff and bartenders.

Accompanied a study order, see H5313
0
WeVote Research Nonpartisan
Bill Summary · H 3251

Summary of Bill H 3251: An Act to Exclude Tipped Wages from Taxable Income

Purpose and Intent

Bill H 3251 aims to amend the Massachusetts General Laws to exclude tipped wages from taxable income. The primary intent of this legislation is to alleviate the tax burden on employees who earn a significant portion of their income through tips, particularly in the hospitality and service industries.

Key Provisions

  • Exclusion of Tipped Wages: The bill proposes an amendment to Chapter 62 of the General Laws of Massachusetts. It introduces a new subsection that specifies:
    • Tipped wages received by employees, as defined in Chapter 149, Section 152A, will not be included in the calculation of Part B adjusted gross income for tax purposes.

This change means that employees who receive tips will not have to report these earnings as part of their taxable income, potentially leading to lower overall tax liabilities for these workers.

Affected Parties

  • Employees in Tipped Positions: The primary beneficiaries of this bill are employees who earn tips, such as waitstaff, bartenders, and other service workers. By excluding tipped wages from taxable income, these individuals could see an increase in their take-home pay.
  • Employers in the Service Industry: While the bill directly affects employees, it may also have implications for employers in the hospitality and service sectors, as it could influence wage structures and employment practices.

Procedural Aspects

  • Introduced: The bill was introduced on February 27, 2025, and referred to the committee on Revenue.
  • Hearing Scheduled: A hearing for the bill is scheduled for November 18, 2025, from 10:00 AM to 1:00 PM in room A-1. This hearing will provide an opportunity for stakeholders to discuss the bill and its implications.
  • Legislative Support: The bill is presented by Representative Michael J. Soter, along with co-sponsors from various districts, indicating a level of legislative support for the proposal.

Related Legislation

  • House Docket No. 4224: This bill is associated with House Docket No. 4224, which it replaces, suggesting that it is part of an ongoing legislative effort to address the taxation of tipped wages.

In summary, Bill H 3251 seeks to provide financial relief to tipped employees in Massachusetts by excluding their tips from taxable income, thereby potentially enhancing their economic well-being. The upcoming hearing will be crucial for gathering input and advancing the bill through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.