In a surprising twist, the Senate unanimously passed the “No Tax on Tips Act,” bringing major tax relief to millions of tipped workers across the U.S.
The bill allows up to $25,000 in tax deductions for reported cash tips. It applies to employees earning $160,000 or less in 2025, adjusted for inflation.
The bill allows up to $25,000 in tax deductions for reported cash tips. It applies to employees earning $160,000 or less in 2025, adjusted for inflation.
Sen. Ted Cruz, R-Texas, introduced the bill with bipartisan support. Nevada Senators Jacky Rosen and Catherine Cortez Masto co-sponsored it.
Sen. Rosen led the bill’s passage via “unanimous consent,” a rare move for consequential tax legislation. Not a single senator objected.
“Nevada has more tipped workers per capita than any other state,” Rosen said. “This will bring real relief to countless working families.”
The idea gained steam after former President Trump campaigned on it in 2024. He unveiled the proposal during a Nevada rally.
Sen. Cruz praised the bipartisan unity: “One way or another, ‘No Tax on Tips’ is going to become law. It’s common-sense relief.”
The bill now heads to the House. With widespread support, lawmakers may pass it standalone or as part of Trump’s broader economic package.
House Republicans aim to use the bill to offset costs in a larger package. Democrats may back a separate vote to keep it clean.
Senate Minority Leader Chuck Schumer called it a win for working-class Americans, saying servers and drivers deserve relief—not billionaires.
If passed by the House, tipped workers like waitstaff, bartenders, and delivery drivers could keep more of what they earn starting in 2025.
If passed by the House, tipped workers like waitstaff, bartenders, and delivery drivers could keep more of what they earn starting in 2025.