North Carolina SB 983: TIPs Tax Deduction.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 983

Short Title: TIPs Tax Deduction. (Public)
Sponsors: Senators Jones, Johnson, and Chitlik (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S983-v-1*
A BILL TO BE ENTITLED 1
AN ACT ALLOWING AN INCOME TAX DEDUCTION FOR TIPS. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 105-153.5(b) reads as rewritten: 4
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 5
deduct from the taxpayer's adjusted gross income any of the following items that are included in 6
the taxpayer's adjusted gross income: 7
... 8
(17) Any amount received as tips that are required to be reported to the taxpayer's 9
employer pursuant to section 6053(a) of the Code." 10
SECTION 2. This act is effective for taxable years beginning on or after January 1, 11
2026. 12