What You Need to Know About Claiming Union Dues on Taxes in 2025

The Tax Cuts and Jobs Act fundamentally changed the landscape for workers trying to claim union dues on taxes. Starting in 2018, most W-2 employees lost the ability to deduct union membership fees at the federal level—a suspension that currently remains in effect through 2025. However, the situation is more nuanced than a simple yes or no answer, particularly when you factor in self-employment status and state-specific tax codes.

The Federal Tax Picture: Limited Options for Most Workers

For the vast majority of union members who are W-2 employees, union dues are not tax-deductible on federal income tax returns. The TCJA eliminated the deduction for unreimbursed employee business expenses, which previously allowed workers to claim job-related costs exceeding 2% of their adjusted gross income. The legislation was designed to simplify tax filing while offsetting other tax reduction measures.

There is one significant exception: self-employed individuals can still claim union dues on taxes as legitimate business expenses. If you’re an independent contractor, freelancer, or gig worker, you can deduct these fees on Schedule C of your tax return. The IRS recognizes union dues as necessary business-related costs for self-employed workers, making this a valuable tax planning opportunity.

Timing and Future Changes

The suspension of union dues deductions is scheduled to expire at the end of 2025. If Congress does not pass new legislation extending the current suspension, miscellaneous itemized deductions—including union dues—could theoretically return in 2026. However, tax policy remains subject to change, and workers should monitor legislative updates for any modifications that could affect their filing status.

State-Level Deductions: Where Workers Still Have Options

While federal law remains restrictive, several states maintain their own tax codes allowing union members to claim union dues on taxes at the state level. New York and Pennsylvania both recognize union dues as legitimate work-related expenses eligible for itemization on state returns. These state-level deductions can provide meaningful tax relief even when federal deductions are unavailable.

Conversely, states with no income tax—including Texas, Florida, and Nevada—do not offer state-level union dues deductions simply because no income tax is collected. Workers in these states have no state-level tax advantage for union membership fees.

Understanding What Qualifies

Not all union-related payments qualify for deductions. Regular membership dues, initiation fees, and collective bargaining representation fees typically qualify where deductions are permitted. However, political contributions to union PACs, voluntary strike fund payments, and union insurance premiums do not qualify as deductible expenses.

Other Deductions and Tax Credits to Explore

Even though claiming union dues on taxes may not be an option for most federal filers, union workers should investigate other available deductions. Educators can deduct up to $300 annually in work-related expenses. Self-employed individuals can deduct travel costs, home office expenses, and retirement account contributions. Active-duty military personnel may still claim job-related moving expenses. Additionally, contributions to 401(k) plans and IRAs offer tax-deferred growth and potential deductions.

Next Steps

Union members should review their specific state tax laws to determine whether they can claim union dues on taxes at the state level. Consulting your state’s tax department website or speaking with a tax professional who understands both federal and state regulations is the most reliable way to identify all available deductions and develop a comprehensive tax strategy that fits your employment situation.