2025 Regular SessionMaryland Legislature

SB823: No Tax on Tips Act

Legislative Summary

Establishing consumer protections related to service fees charged by food service facilities; specifying the State minimum wage rate; prohibiting, beginning July 1, 2028, employers of tipped employees from including a tip credit amount as part of the employees' wages; allowing a subtraction under the State income tax for certain qualified tips received by certain individuals; and allowing a person a credit against the State income tax for certain amounts paid to an employee based on the payment of certain wages and tips.

Demographic Impact

Overall analysis of equity impact

75% Positive
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Bill History

2/3/2025
First Reading Finance and Budget and Taxation
Senate
2/6/2025
Hearing 3/05 at 1:00 p.m. (Finance)
Senate

Status Information

Current Status
Introduced(2/3/2025)
Chamber
Senate
Committee
Finance(Senate)

Sponsors

Democrat: 1

Primary Sponsor

Cory McCray
Cory McCray
Democrat

Documents

Introduced
Bill Text2/4/2025126.3 KB