Virginia Governor Proposes Eliminating State Income Tax on Service Tips

Glenn Youngkin's budget plan aims to boost take-home pay for over 250,000 service workers and make Virginia the first state to adopt this measure.

Governor Youngkin's proposal would exempt service tips from state income tax, with an estimated $70 million in annual tax relief for workers.
The initiative targets employees in industries like food service, hospitality, and personal care, increasing their take-home pay and financial stability.
The measure is part of Youngkin's broader budget plan and builds on his administration's prior $5 billion in tax relief for Virginians.
The proposal mirrors a similar idea championed by President-elect Donald Trump and has garnered bipartisan interest at both state and federal levels.
The plan requires approval from Virginia’s General Assembly, where Democrats currently hold majorities in both chambers.