Rep. Sanalitro renews effort to end state tax on tips with new bill

State Representative Jennifer Sanalitro (R-Hanover Park) is renewing her efforts to pass legislation that would remove state income tax on tips earned by service workers in Illinois. The proposed measure, House Bill 1898, was filed by Sanalitro in spring 2025 and aims to amend the Illinois Income Tax Act. If enacted, it would allow an income tax deduction for gratuities included in a taxpayer’s federal adjusted gross income.

Sanalitro explained her position: “Our tipped workers deserve a break. They work long hours, often for modest wages, and the tips they earn should not be subject to additional state taxes. My bill is a simple, common-sense solution that not only mirrors the federal government’s policy, but also lets these workers keep more of what they earn.”

The push comes after the federal government announced plans to eliminate taxes on tips at the national level. However, Illinois has not adopted this change. Sanalitro criticized state leaders for their decision and urged action from the General Assembly.

“Illinois has a chance to do the right thing, and our leaders are walking away from it,” she said. “I’m going to keep fighting to pass HB1898 because our service workers deserve a lawmaker that shows up for them.”

In addition to HB1898, Sanalitro has introduced legislation aimed at removing state taxes on overtime pay (HB1899), as part of her efforts to reduce the tax burden on working residents.

Sanalitro was elected as a Republican representative for Illinois’ 48th House District in 2023, succeeding Terra Costa Howard. Her district includes Addison, Bensenville, Bloomingdale, Carol Stream, Elk Grove Village, Hanover Park, Itasca, Medinah, Roselle, Schaumburg, and Wood Dale across DuPage and Cook counties.

Updates on HB1898 can be tracked through ILGA.gov. More information about Representative Sanalitro is available at RepSanalitro.com.