News of the Day April 6, 2026
Governor Evers Vetoes Wisconsin Tax Breaks on Tips and Overtime Pay

Governor Tony Evers vetoed two bills Friday that would have eliminated state income tax on tips and overtime pay.

The bills would have mirrored similar legislation at the federal level.

Researchers at the Wisconsin Policy Forum — an independent, nonpartisan research group — say the bills could have given some tax relief to hundreds of thousands of people, but federal tax breaks have a bigger impact on take-home pay.

Governor Evers vetoed Senate Bill 36 and Assembly Bill 461 Friday afternoon. The bills would have allowed up to $12,500 of overtime pay, or the ‘half’ of time-and-a-half, and $25,000 in tips to be tax deductible at the state level. Those amounts match the federal legislation.

In his letter vetoing the tips bill, which would have been in effect until 2028, the Governor wrote, “I object to adopting a temporary income tax provision instead of working to provide comprehensive and lasting relief to Wisconsin taxpayers.”

In his letter describing his reason for vetoing the overtime bill, the Governor said, “I object to this bill changing the tax code in a way that will treat Wisconsin workers who earn similar wages differently just because of their classification as salaried or hourly workers.”