Europe EditionSenate Passes Bill to Cut Taxes on Tips: Here's Everything You Need to Know
- In May 2025, the U.S. Senate unanimously approved the No Tax on Tips Act, which would allow workers earning less than $160,000 to deduct up to $25,000 of their cash tips from their federal taxable income.
- President Trump pledged this tax break during his 2024 campaign, inspired by a server at his Las Vegas hotel, aiming to support working-class voters amid rising costs.
- The bill proposes a new federal income tax break for cash tips, allowing eligible workers to deduct as much as $25,000 annually. It targets traditional tipped positions, broadens employer payroll tax credits to include jobs in hair, nail, esthetic, and spa services, and is currently pending approval in the House.
- Budget analysts predict the proposal will add $40 billion to the federal deficit by 2028, while a fiscal watchdog group estimates that making the tip tax exemption permanent could cost $120 billion over ten years.
- Although the law could provide tax relief for many service workers and aid recruitment, experts and advocacy groups caution it may worsen inequities and distract from broader wage increases.
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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