AN ACT allowing an income tax deduction for tips.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(b) reads as rewritten:

(b)      Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income:

…

(17)      Any amount received as tips that are required to be reported to the taxpayer's employer pursuant to section 6053(a) of the Code.

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2026.