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Senator Rosilicie Ochoa Bogh (R-Yucaipa) has released the following statement in response to the U.S. Senate’s unanimous passage of the federal “No Tax on Tips Act” championed by President Donald Trump. The “No Tax on Tips Act” would establish a new tax deduction of up to $25,000 for tips. The measure now moves to the U.S House of Representatives.
“I applaud the U.S. Senate for putting service workers first and providing much needed tax relief,” said Senator Ochoa Bogh. “Now it’s California’s turn. Tipped workers are taxed on inconsistent and unpredictable income causing instability for families already struggling to make ends meet. That is why I’m working diligently to get SB 17 to the finish line.”
On the first day of the new legislative session, Senator Rosilicie Ochoa Bogh (R-Yucaipa), joined by Senators Shannon Grove (R-Bakersfield) and Suzette Martinez Valladares (R-Santa Clarita) as joint authors, introduced Senate Bill 17, which will provide a California state income tax deduction for tips.
Under SB 17, workers earning tips would be eligible for a tax deduction of up to $20,000 for tips if their adjusted gross income is under $125,000 for individuals or $250,000 for joint filers. The bill also updates the state’s tax code to align the definition of tips with federal standards while excluding licensed professionals, except barbers and cosmetologists, from claiming the deduction.
This bill would bring much-needed relief to Californians who rely on tips to survive. This measure reflects a growing bipartisan recognition that tips serve as a reward for exceptional service rather than a predictable income source.