As the Arizona legislative session kicks off on Monday, the Republican majority is pushing for no tax on tips.
House Bill 2081 would scrap the state income tax on cash tips retroactively from the last day of 2024.
“It’s part of our majority agenda,” House Speaker Steve Montenegro told The Center Square during a media availability on Monday.
“We're gonna be working with the [presidential] administration wherever those things align. We're excited for what President Trump is going to bring. He's outlined his agenda. Here at the state level, we wanna make sure that we're lining those two up.
The Grand Canyon State has a flat 2.5% income tax rate, which started in 2023 after it became law under the Ducey administration.
