Warner, Hogan Call for No Taxes on Tips, Overtime Wages

June 12, 2025

HARRISBURG – Recognizing the growing financial burden on Pennsylvania taxpayers, Reps. Ryan Warner (R-Fayette) and Joe Hogan (R-Bucks) have introduced legislation to remove tips and overtime wages from taxable income in the Commonwealth.

“One of the best ways to boost our economy is also one of the simplest – allowing people to keep more of their hard-earned money,” Warner said. “While Congress is working to do that by eliminating federal income taxes on tips and overtime, I believe we must do the same with state-level taxes.”

House Bills 1514 and 1586 would create a separate class of compensation, allowing for a targeted tax credit to offset any taxes collected on both tips and overtime wages. This means more workers will be able to see more of their hard-earned money returned to them.

“I’m proud to stand with my friend, Rep. Warner, and offer real tax relief to Pennsylvania’s workers. Earning tips for good service and working beyond your regularly scheduled hours should be encouraged and incentivized by allowing the worker to keep more money in their own pocket,” Hogan said. “This is good for Pennsylvania’s families and good for our economy.”

The lawmakers acknowledged hundreds of thousands of Pennsylvanians work in the service industry or in a field where overtime hours are offered. For some, it’s a part-time job to help bring in more household income. For others, the extra work is needed just to stay afloat. Regardless, these working people are the backbone of the state’s economy and deserve a tax cut. 

In addition to benefiting workers, the lawmakers say the bills would help businesses retain their employees and encourage out-of-state workers to move to Pennsylvania to benefit from the tax policy. 
 
Both bills have been referred to the House Finance Committee for consideration.