PEORIA ( 25News Now ) - Tips are still fair game for tax collectors in the Land of Lincoln.

Illinois has not extended a federal tax exemption for tips to state income taxes for tipped workers. The federal ‘No Tax on Tips’ policy was put in place in July as part of the One Big Beautiful Bill Act.

Illinois has a 4.95% tax on income, and restaurant workers here can expect to pay that on all the tips they make. Illinois hasn’t adopted the federal exemption from tax on overtime and tips at the state level, so tipped workers here can expect that rate on all the tips they make.

Jon Hopkins owns a Peoria bar called The Neon Bison, and he also serves on the Tazewell County Board. He said his staff usually sees an increase in tips this time of year. Hopkins said he wasn’t surprised about the st

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