Bill could bring deductions on tips for some workers in Louisiana

BATON ROUGE, La. (Louisiana First) — Could a tax cut be coming for workers below certain income levels who receive tips in Louisiana?

A bill about this was filed for introduction during the upcoming legislative session.

State Rep. Alonzo Knox, D-New Orleans filed House Bill 198 which would allow workers to deduct tips from state income taxes.

“This legislation will bring much-needed relief to many of the hardworking people of Louisiana,” Knox said.

A breakdown in the bill shows what percentage of a deduction that a worker can claim depending on the amount of their adjusted gross income.

If passed, the law would apply towards taxable periods that start on or after Jan. 1, 2026, according to the bill.

“Louisiana has one of the nation’s highest percentages of tipped workers, with a significant concentration in my district in New Orleans,” Rep. Knox said. “These workers-servers, bartenders, barbers, hair stylists, hotel staff, rideshare drivers, spa workers, and many others-keep our economy and hospitality industry thriving. Yet, I hear their struggles firsthand when I move through my district. The cost of everything has increased-essential grocery items, rent, insurance, and property taxes-making it harder than ever to make ends meet,” Knox said.

Knox said his bill is getting support from both sides of the aisle.

He said, “I’m pleased to share that my bill is already receiving bipartisan support. This is another step in my effort to prioritize Louisiana workers, help them take home more of what they earn to improve their quality of life, and strengthen the foundation of our economy.”

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