PENNSYLVANIA, March 30 - PRINTER'S NO. 1549

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1255

Session of

2026

INTRODUCED BY GEBHARD, BARTOLOTTA, FONTANA, ROTHMAN, BROWN,

BAKER, PENNYCUICK, STEFANO, J. WARD, KANE, DUSH AND BROOKS,

MARCH 30, 2026

REFERRED TO FINANCE, MARCH 30, 2026

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in personal income tax, further providing for

classes of income and providing for exclusion of tips from

taxable income.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 303(a) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended

by adding a paragraph to read:

Section 303. Classes of Income.--(a) The classes of income

referred to above are as follows:

* * *

(9) Tips excluded under section 303.1 shall not be included

in compensation for the purposes of calculating taxable income.

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