State Representative Norine Hammond is supporting President Trump’s “No Tax on Tips” initiative, which aims to provide tax relief for working families in Illinois during the current tax filing season.
Hammond has introduced House Bill 4877. This bill would allow an Illinois income tax deduction for tips and overtime pay, mirroring a federal deduction that was enacted by President Trump and the Republican Congress last year. The federal provisions, known as No Tax on Tips and No Tax on Overtime, were included in the “One Big, Beautiful Bill.” Both measures became effective in tax year 2025 and are set to expire at the end of 2028. The deductions have annual caps: $25,000 for tips and $12,500 for overtime.
Currently, Illinois has opted out of these deductions. As a result, workers must pay the full state income tax rate of 4.95% on their tips and overtime earnings.
“Illinois working families continue to face significant affordability challenges made worse by Governor Pritzker and the Democratic majority in Springfield,” Rep. Hammond said. “Pritzker chose partisan politics over providing meaningful tax relief for Illinois workers. From the young mother waiting tables to make ends meet to the factory worker putting in overtime, working families have been denied this essential relief by Illinois Democrats. I’m proud to stand with President Trump in support of our working families and I urge Gov. Pritzker to do the right thing and pass ‘No Tax on Tips and Overtime.’”
The U.S. Department of Labor reports that more than 198,000 tipped workers are employed in Illinois. Many work in service industries where they receive a cash wage of $9 per hour—less than the standard minimum wage of $15—and rely on tips to supplement their income.
“I will continue to advocate for real solutions that address affordability by reining in out-of-control government spending, cutting taxes for working families and seniors, and opposing Pritzker’s tax hikes. Illinois families deserve real relief, not another bill to pay,” Rep. Hammond concluded.
Hammond is a Republican who was elected to represent Illinois’ 94th House District in 2023 after replacing former representative Randy Frese.
