Senate Passes Bill to Cut Taxes on Tips: Here's Everything You Need to Know
- The U.S. Senate unanimously passed the No Tax on Tips Act in May 2025 to eliminate federal income taxes on reported tips for eligible workers.
- The measure follows President Trump's campaign pledge to end taxes on tips, aimed at aiding working-class voters amid rising costs, with bipartisan and employer support.
- The bill proposes an income tax deduction for tipped workers earning below $160,000 in 2025, allowing them to exclude up to $25,000 of their cash tips from federal taxes, and also broadens employer payroll tax credits to cover additional service industries such as barbering, nail care, and spa treatments.
- Congressional analysts estimate the provision will increase the federal deficit by $40 billion through 2028, while one advocacy group projects a $120 billion cost over ten years if permanent.
- The act may provide moderate tax relief to some service workers and help recruitment, though experts and advocates warn it could increase inequities and distract from raising the minimum wage.
125 Articles
125 Articles
‘No Tax On Tips’ Pledge Advances: What CA Workers Should Know
'No Tax On Tips' Pledge Advances: What CA Workers Should Know - Across California, CA - In a unanimous vote, the Senate approved the idea to create a new tax deduction eliminating federal income taxes on tips.
Senate Unanimously Passes Bill Granting $25,000 Tax Break for Tipped Workers - Asian Journal News
In a rare display of bipartisan unity, the U.S. Senate on Tuesday unanimously approved the “No Tax on Tips Act,” a bill that would exempt up to $25,000 in annual cash tips from federal income taxes for workers in traditionally tipped occupations. The legislation marks a significant shift in federal tax policy affecting millions of service industry workers. The measure…
‘No tax on tips’ bill unanimously passes US Senate: What does it mean?
In a display of bipartisan unity, the U.S. Senate unanimously approved a "no tax on tips" bill, which would allow tipped workers earning up to $160,000 annually to deduct up to $25,000 in reported tips from their federal income taxes.
Hotels Are Pushing a New Way to Tip—And Guests Have Strong Opinions About It
You walk into your hotel room, throw your bags on the bed, and head for the thermostat because it’s either set to “arctic tundra” or “hell’s sauna.” Then you spot it—right next to the remote control, there’s a new tech-enhanced sign that says: “Tipping just got easier! Should you wish to show appreciation to our hardworking room attendants team.”One Reddit user spotted this very sign at a Courtyard by Marriott and was less than thrilled. “Are we…
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