California 20252026 Regular Session Status: Introduced 1 R cosponsors

AB 1550 — Personal income taxes: deductions: tips: overtime compensation.

Last action — In committee: Set, final hearing. Held under submission.

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  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the Assembly. Introduced January 07, 2026. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Prognosis

Not enough signal yet

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

Not enough signal yet to read this bill's trajectory — we surface a likelihood only once there's real movement (stage, sponsorship, committee, or votes) to point to.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in calculating taxable income and allows a taxpayer to elect to take a standard deduction in lieu of itemizing deductions. Existing federal income tax law, for taxable years beginning before January 1, 2029, allows deductions in determining taxable income, as defined, for amounts equal to the qualified tips, as defined, and qualified overtime compensation, as defined, received by a taxpayer during the taxable year, not to exceed certain amounts, as specified. This bill would, for taxable years beginning on or after January 1, 2026, and before January 1, 2029, conform to federal income tax law with regard to qualified tips and qualified overtime compensation. The bill would, in that regard, allow the above-described deductions to be taken in addition to the standard deduction. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. In committee: Set, final hearing. Held under submission.

  2. In committee: Set, second hearing. Referred to REV. & TAX. suspense file.

  3. Re-referred to Com. on REV. & TAX.

  4. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  5. In committee: Set, first hearing. Hearing canceled at the request of author.

  6. Referred to Com. on REV. & TAX.

  7. From printer. May be heard in committee February 7.

  8. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
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Frequently asked questions

What does AB 1550 do?
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in calculating taxable income and allows a taxpayer to elect to take a standard deduction in lieu of itemizing deductions. Existing federal income tax law, for taxable years beginning before January 1, 2029, allows deductions in determining taxable income, as defined, for amounts equal to the qualified tips, as defined, and qualified overtime compensation, as defined, received by a taxpayer during the taxable year, not to exceed certain amounts, as specified. This bill would, for taxable years beginning on or after January 1, 2026, and before January 1, 2029, conform to federal income tax law with regard to qualified tips and qualified overtime compensation. The bill would, in that regard, allow the above-described deductions to be taken in addition to the standard deduction. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
Who sponsors AB 1550?
AB 1550 is sponsored by Sanchez, Kate (Republican).
What is the current status of AB 1550?
This bill has been introduced in the Assembly. Introduced January 07, 2026. It must pass committee before a floor vote.
Where can I track AB 1550?
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