PORTLAND, Ore. ( KOIN ) – Oregon state Sen. Dick Anderson (R-Lincoln City) submitted a Legislative Concept for a “No Tax on Tips” bill ahead of the 2025 legislative session, the lawmaker announced Monday.
The bill would aim to provide financial relief to Oregon service industry workers – including waitstaff, bartenders and other tipped employees — by fully exempting tips from the Oregon state income tax.
“With high costs crushing Oregon workers, it’s more important than ever to support policies that put money back in the pockets of those who need it most,” said Sen. Anderson. “Service industry employees rely on tips as a significant part of their income, and taxing these earnings only exacerbates the financial strain they face. This bill is a pro-worker initiative that ensures fairness by letting workers keep more of what they earn.”
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Currently, tips are taxed the same as any other income in Oregon, between 4.75% and 9.9% depending on income level, Oregon Department of Revenue Public Information Officer Robin Maxey told KOIN 6 News.