# Virginia HB1965: Income tax, state; deduction for tips and overtime compensation.

Virginia HB1965, Income tax, state; deduction for tips and overtime compensation., is a 2025 Regular Session House bill sponsored by Anne Ferrell Tata (Republican); status failed, last action 2025-02-04 (Left in Finance) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/VA-HB1965-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia HB1965
- State: Virginia
- Session: 2025 Regular Session
- Title: Income tax, state; deduction for tips and overtime compensation.
- Status: failed
- Chamber: House
- Introduced: 2025-01-06
- Last action: 2025-02-04, Left in Finance
- Sponsor: Anne Ferrell Tata (Republican)
- Cosponsors: 0
- Subjects: Subcommittee #3
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Income tax deduction; tips and overtime compensation. Provides, for taxable years beginning on and after January 1, 2026, an income tax deduction for the amount of tips received during the taxable year that are included on statements furnished to the employer for federal tax purposes. The bill also establishes, for taxable years beginning on and after January 1, 2026, an income tax deduction for any overtime compensation, defined in the bill, received by an employee who is not exempt from overtime compensation rules pursuant to the federal Fair Labor Standards Act.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Anne Ferrell Tata (Republican), House

## Actions (5)

- 2025-02-04: Left in Finance (House)
- 2025-01-24: Assigned Finance sub: Subcommittee #3 (House)
- 2025-01-18: Impact statement from TAX (HB1965) (House)
- 2025-01-06: Referred to Committee on Finance (House)
- 2025-01-06: Prefiled and ordered printed; Offered 01-13-2025 25102486D (House)

## Bill text

- Substitute, 2025-01-27: [HTML](https://lis.blob.core.windows.net/files/1030325.HTML), [PDF](https://lis.blob.core.windows.net/files/1030324.PDF)
- Introduced, 2025-01-06: [HTML](https://lis.blob.core.windows.net/files/1014208.HTML), [PDF](https://lis.blob.core.windows.net/files/1014207.PDF)

## Related bills

- HR671: Commending JR's Auto Care. (adopted)
- SB941: Robbery; use of air or gas operated weapon, etc., penalty. (failed)
- HB1746: Public safety officer; definition. (failed)
- HB1600: Budget Bill. (failed)
- SB1449: Data centers; site assessment for high energy use facility. (failed)
- HB1609: Essential health benefits benchmark plan; Commission to consider coverage for infertility treatment. (to governor)

## Sources
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1030325.HTML)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1030324.PDF)
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1014208.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1014207.PDF)

## Related
- [HR671: Commending JR's Auto Care.](https://policyrisk.com/state-bill/VA-HR671-2025)
- [SB941: Robbery; use of air or gas operated weapon, etc., penalty.](https://policyrisk.com/state-bill/VA-SB941-2025)
- [HB1746: Public safety officer; definition.](https://policyrisk.com/state-bill/VA-HB1746-2025)
- [HB1600: Budget Bill.](https://policyrisk.com/state-bill/VA-HB1600-2025)
- [SB1449: Data centers; site assessment for high energy use facility.](https://policyrisk.com/state-bill/VA-SB1449-2025)
- [HB1609: Essential health benefits benchmark plan; Commission to consider coverage for i…](https://policyrisk.com/state-bill/VA-HB1609-2025)
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Source: PRIA, https://policyrisk.com/state-bill/VA-HB1965-2025 (as of 2026-10-17).