S. 129Introduced
No Tax on Tips Act
Establishes a federal tax deduction of up to $25,000 for qualifying reported cash tips and expands an employer payroll tax credit to certain beauty service tips
Plain-English overview
What this bill does
Establishes a federal tax deduction of up to $25,000 for qualifying reported cash tips and expands an employer payroll tax credit to certain beauty service tips
Key points
- Establish tax deduction for tips
- Prohibit deduction above income threshold
- Limit deduction to qualifying cash tips
- Expand payroll tax credit
Current status
Where it stands
Status
Introduced
Latest action
2025-05-26 — Held at the desk.
Related context
Topics and policy areas
undefinedAccounting and auditingFood industry and servicesIncome tax deductionsService industriesTax administration and collection, taxpayersTaxation