California’s Workers Tax Fairness Credit would be the first tax credit for union dues in the U.S.
A California bill related to the state’s 2022-2023 budget includes a proposed tax credit for union dues. Once implemented, the tax credit would be the first of its kind in the U.S. Union dues are currently tax-deductible in California and some other states. (A tax deduction lowers a person’s taxable income before calculating taxes, while a tax credit reduces the amount of tax a person is responsible for paying.)