AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX DEDUCTION OR CREDITS APPLICABLE TO QUALIFIED TIP INCOME.

Summary

The bill lets Delaware resident and nonresident employees who receive cash tips deduct up to $15,000 of those tips from state taxable income. The deduction phases out at certain income levels and becomes a refundable credit for residents whose federal AGI is under $40,000 (single) or $80,000 (joint). It applies to service‑industry jobs such as servers, bartenders, delivery staff, barbers and beauticians and runs from tax years beginning after 2026 until the end of 2029.

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