Virginia Gov. Youngkin calls for end to taxes on tips ahead of legislative session

Virginia Governor Glenn Youngkin, a Republican, is advocating for the elimination of taxes on tips in preparation for the upcoming legislative session in the commonwealth. This move is projected to put an estimated $70 million back into the pockets of Virginia workers annually, according to a press release from Youngkin’s office on Monday.

The proposal to end taxes on tips has the potential to positively impact over 250,000 individuals in Virginia who work in sectors such as food service, personal services like hairstyling, hospitality, and other industries where tipping is customary. “We have delivered over $5 billion in tax relief to date, and we remain committed to lowering the cost of living for hardworking Virginians. It’s their money, not the government’s,” stated Youngkin in the release.

By exempting tips from taxable income, it is expected that the take-home pay of hundreds of thousands of Virginians will increase, giving them more financial flexibility and enhancing their purchasing power. This, in turn, is anticipated to bolster financial stability, stimulate local economies, and acknowledge the value of their hard work.

Virginia workers who receive tips will have the opportunity to claim a deduction on their state tax return if these earnings are included in their federal adjusted gross income, as per the release.

“This is a way to keep more money in their pocket rather than handing it over to the government. With surpluses already in place, the elimination of taxes on tips will become a mantra in Virginia,” Youngkin expressed during an interview on Fox News’ “America’s Newsroom.”

The governor’s proposal mirrors former President Trump’s campaign promise to abolish taxes on tips, with Vice President Harris also voicing support for this initiative during her presidential campaign.

This proposal arrives ahead of the commencement of Virginia’s legislative session in the next month and would necessitate approval from the state’s General Assembly. It remains uncertain if Democrats, who presently hold the majority in both chambers, would back Youngkin’s proposition.

In the upcoming year, Virginia’s gubernatorial race will take place, pitting Lieutenant Governor Winsome Earle-Sears, a Republican, against U.S. Representative Abigail Spanberger, a Democrat.

The potential impact of this tax relief on workers in Virginia is substantial, and it underscores the commitment of Governor Youngkin to supporting the financial well-being of the state’s residents.