No tax on tips

No tax on tips is an American proposal to not tax income earned from tips. During the 2024 United States presidential election, both main candidates supported legislation to remove federal taxes from tips.

On May 20, 2025, the United States Senate passed the bipartisan No Tax on Tips Act proposed bill by unanimous consent. A version of the bill was included in the One Big Beautiful Bill Act and signed into law on July 4, 2025.

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