Tipped Worker Tax Relief Measure Clears Delaware House Committee
June 18, 2026/
A bill providing state tax relief for tipped workers has cleared a House committee. The proposed legislation, sponsored by State Representative Jeff Hilovsky, would allow eligible workers to deduct up to $15,000 in tip income from their Delaware state taxes. The tax break would sunset at the end of 2029 unless renewed. House Substitute 1 for House Bill 386, known as the Tipped Worker Tax Relief Act, has been released from the House Revenue & Finance Committee on a 4-3 vote and is now eligible for consideration by the full House.
From legis.delaware.gov:
House Substitute 1 for House Bill 386
153rd General Assembly (Present)
Progress
Out of Committee 6/17/26
Legislation has been voted out of Committee; now placed on the Ready List
Details
6/17/26
Sen. Richardson, Buckson
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX DEDUCTION OR CREDITS APPLICABLE TO QUALIFIED TIP INCOME.
This Act establishes the Tipped Worker Tax Relief Act to provide targeted state income tax relief to tipped workers in Delaware. It creates a subtraction from income of up to $15,000 of qualified tips. The program sunsets the end of 2029 unless renewed. This legislation promotes fairness, supports workforce retention in the small business community, and addresses affordability challenges without new taxes or mandates on employers.
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