ATLANTA — A bill from the 2025 legislative session came back before members of the Georgia General Assembly to end taxes on tips for workers across the state.
According to Senate Bill 2, tipped workers, such as bar tenders, waiters and other service industry positions, would be able to avoid paying state taxes on tips.
The bill, if passed, would require employers to submit tip information to the Georgia Department of Revenue for the amount of tips paid to relevant employees.
Businesses would be required to provide that data for the tax year started on Jan. 1, 2025 and the data would be due to the state for review no later than Jan. 31 of this year.
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For tax years starting Jan. 1 and beyond, the total amount of tips would not be subject to state taxes and data would need to be provided to the state by employers on a monthly or quarterly basis.
The legislation says tips, as defined for this particular proposal, would include cash tips received directly from customers, tips from customers who leave a tip electronically or via credit, debit, gift card or other type of payment, as well as the value of a noncash tip like event tickets or valuable items.
Pooled tips, where businesses pool all tips together and have a formal or informal tip-sharing policy would also be included, according to the legislative text.
While the bill was recommitted on Jan. 12, no hearings for it have been scheduled yet for the 2026 legislative session.
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