Off the Tax Roll: Tips, Overtime, and Income Taxes

A new report, Off the Tax Roll: Tips, Overtime, and Income Taxes, released by Forward Analytics, finds that a “No-Tax-On-Tips” proposal, paired with the pre-existing federal policy, would reduce state income taxes for Wisconsin workers who earn tips and overtime by a combined $2.7B over the next decade, with an equal cost to total state revenue collections. The report additionally examines how the proposal would interact with other tax credits (including SNAP), and how it could lead to wage reclassifications.

Find media coverage from the report below:

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WisPolitics/State Affairs: Report: Nixing tax on tips, overtime would reduce state collections by $2.7 billion over 10 years (10.15.26)
Milwaukee Journal Sentinel: Cost of ending Wisconsin tax on tips, OT pegged at $2.7B over decade (10.15.26)
Wisconsin State Journal: No state income tax on tips, overtime would cost Wisconsin $2.7 billion over next decade
WBAY: Report: Wisconsin would see $2.7 billion impact by ending taxes on tips and overtime (10.15.26)