A new bill authored by State Sen. Julian Bradley in the Wisconsin Senate seeks to exempt cash tips from state income tax, aiming to adjust tax calculations for tipped income, according to the Wisconsin State Senate.
According to the Wisconsin State Legislature’s official website, the bill was described as follows: “an income tax exemption for cash tips paid to an employee. (FE)”.
The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.
In essence, this bill amends Wisconsin statutes to create an income tax exemption for cash tips received by employees from customers of their employers. The exemption applies to both residents and nonresidents who are subject to Wisconsin state taxes. It modifies existing tax provisions to factor cash tips into calculations related to taxable wages, salaries, unearned income, and net earnings from trade or business activities. The bill stipulates specific amendments and repeals relevant statutory subsections to accommodate the new exemption. The modifications first apply to taxable years beginning after Dec. 31, 2024.
The bill was co-authored by Representative Ron Tusler (Republican-3rd District), Senator Rachael Cabral-Guevara (Republican-19th District), Senator Dan Feyen (Republican-20th District), Senator Rob Hutton (Republican-5th District), Senator Steve L. Nass (Republican-11th District). It was co-sponsored by Representative Elijah R. Behnke (Republican-6th District), Representative Chanz J. Green (Republican-74th District), and Representative Rick Gundrum (Republican-58th District), along 11 other co-sponsors.
Julian Bradley has authored or co-authored another seven bills since the beginning of the 2025 session, with none of them being enacted.
Bradley graduated from the University of Wisconsin at La Crosse in 2014 with a BS.
Bradley, a Republican, was elected to the Wisconsin State Senate in 2021 to represent the state’s 28th Senate district, replacing previous state senator Dave Craig.
In Wisconsin, the legislative process starts when a senator, constituent, group, or agency proposes an idea for a bill. After drafting, the bill is introduced, numbered, and referred to a committee for review and public input. If approved, it moves through three readings and votes in both the Senate and Assembly. Once both chambers pass the same version, the bill goes to the governor, who can sign it, veto it, or let it become law without a signature. Only a small share of bills introduced each session ultimately become law. You can learn more about the Wisconsin legislative process here.
| Bill Number | Date Introduced | Short Description |
|---|---|---|
| SB36 | 02/12/2025 | An income tax exemption for cash tips paid to an employee. (FE) |
| SB35 | 02/12/2025 | Law enforcement and firefighter annuitants in the Wisconsin Retirement System who are rehired by a participating employer. (FE) |
| SB25 | 02/05/2025 | Court-issued criminal complaints in officer-involved deaths |
| SB10 | 02/03/2025 | Access to public high schools for military recruiters |
