Virginia Gov. Youngkin is calling for an end to tip taxes ahead of the legislative session

Virginia Gov. Youngkin is calling for an end to tip taxes ahead of the legislative session

Virginia Gov. Glenn Youngkin, a Republican, is pushing to eliminate taxes on tips before the commonwealth’s next legislative session.

This proposal would put an estimated $70 million a year into the pockets of Virginia workers, Youngkin’s office said in a news release Monday.

An end to tip taxes could help more than 250,000 people in Virginia who work in the restaurant industry, personal service industries such as hairdressers, hospitality and others who receive tips through their employment in other industries.

“We have delivered over $5 billion in tax relief to date and remain committed to lowering the cost of living for hard-working Virginians. It’s their money, not the government’s,” Youngkin said in the release.

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Glenn Youngkin during the Republican National Convention

Virginia Governor Glenn Youngkin during the Republican National Convention (RNC) at the Fiserv Forum in Milwaukee, Wisconsin, on Monday, July 15, 2024.

“Removing tips from taxable income will directly increase the take-home pay of hundreds of thousands of Virginians and give them more purchasing power, which in turn improves financial stability, stimulates local economies and recognizes the value of their hard work,” he continued.

Virginia workers who earn tips could claim a deduction on their state tax return if the income is included in their federal adjusted gross income, the release said.

Governor Youngkin speaks in DC

(Andrew Leyden/NurPhoto via Getty Images)

“This is a way to keep more money in your pocket instead of giving it to a government. We already have a surplus and that’s why Virginia won’t have a tax on tips,” Youngkin said Monday during an appearance on Fox News’ “America’s Newsroom.”

The governor’s proposal echoes President-elect Trump’s call during his campaign to eliminate taxes on tips. Vice President Harris also expressed support for eliminating the tip tax during her presidential campaign.

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Glenn Youngkin

Virginia Governor Glenn Youngkin speaks during the Faith & Freedom Coalition’s Road to Majority Policy conference at the Washington Hilton on June 22, 2024 in Washington, DC (Samuel Corum/Getty Images)

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The proposal comes before the Virginia legislative session begins next month. It requires approval from the commonwealth’s General Assembly, and it is unclear whether Democrats who control both chambers would support Youngkin’s proposal.

Next year is Virginia’s gubernatorial race, where Lieutenant Governor Winsome Earle-Sears, a Republican, is expected to face U.S. Rep. Abigail Spanberger, a Democrat.

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