by Donald Eng CTNewsJunkie
HARTFORD, CT — Should Connecticut workers pay income tax on income they receive from tips or work beyond the standard 40-hour week? About a dozen Republican representatives say no.
“This is a commonsense issue,” said state Rep. Joe Polletta of Watertown. “These are people that have been hit by inflation. Many of these … are middle class workers. Maybe they’re paying their way through school, they’re trying to pay off their student loan. Maybe it’s a single mom trying to provide for her children. Why not extend this benefit?”
State Rep. Joe Polletta speaks in favor of eliminating the income tax on tips and overtime at the Legislative Office Building in Hartford, CT on Feb. 27, 2026. Credit: Donald Eng / CTNewsJunkie
Polletta was joined by a handful of House Republicans and representatives from the hospitality industry, including Michelle Nicholson, owner of Flour Girl bakery in Hebron and Scott Dolch, president and CEO of the Connecticut Restaurant and Hospitality Association. The group is pushing for House Bill 5010, An Act Exempting Tips Or Gratuities And Overtime Pay From The Personal Income Tax.
The bill was scheduled for a public hearing and potential action in the Finance, Revenue and Bonding Committee Friday afternoon.
“At the end of the day, we all know that Connecticut is, unfortunately, one of the most expensive states to live in” Dolch said. “Any way that we can do something to help our middle class, to help our workers, especially in our industry, it sends a powerful message.”
Nicholson agreed. She said the bill would have a substantial impact on her employees.
“They’re doing the hard work,” she said. “I need them to show up when people call out. When we have overtime hours that are needed, when we need them to take that double and triple shift. And I think this bill really puts in the forefront the ability to put those dollars back in their pocket and reward the work that we need done the most.”
State Rep. David Rutigliano of Trumbull, who is a partner in the SBC Restaurant Group that operates Southport Brewing Co., Local Kitchen & Beer Bar and the Sitting Duck Tavern and employs about 300 workers, stressed that employers like himself would not receive any tax break from the proposal.
“I am here today on behalf of the caucus to advocate for my employees,” he said. “This is one way to give people a break.”
He said H.B. 5010 was “one of the easiest, most commonsense things we can do” to put more money into the pockets of residents.
House Minority Leader Vincent Candelora of North Branford said the estimated impact on state revenue would be about $126 million in tax revenue. He added that those who voluntarily worked extra shifts or overtime should be entitled to keep the additional income.
“I think there’s a recognition … that if you’re working extra shifts, overtime, should government be taking that money?” he said. “Typically these are hourly employees. We believe the money should just stay back with them. Government shouldn’t be benefitting from overtime work.”
As of Friday afternoon, the public hearing on H.B. 5010 and 10 other bills, including proposals to raise the maximum income tax rate on the state’s highest earners and to establish a child tax credit, was ongoing. In addition to 153 people who signed up to speak on one of the bills at the hearing, 40 residents or groups submitted written testimony on H.B. 5010. Of those about 30 supported the measure including the Greater Bridgeport NAACP and the CT River Valley Chamber of Commerce.
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