Photo: Alamy
The “No Tax on Tips Act” passed the Senate Tuesday night with unanimous support. In a 100-0 vote, American senators supported the legislation in a rarity within politics.
🚨 #BREAKING: The US Senate has UNANIMOUSLY passed President Trump’s No Tax on Tips Act
— Nick Sortor (@nicksortor) May 20, 2025
Tipped workers: Trump is KEEPING HIS PROMISE!
Relief is coming soon! 🇺🇸🔥 pic.twitter.com/yrwcFHt8S9
S.129 codifies the elimination of the Internal Revenue Service (IRS) taxation of “qualified tips” by allowing service workers who receive gratuity to deduct $25,000 from the tipped portion of their income each year.
If signed into law, the “No Tax on Tips Act” will apply to all eligible taxable income earned after December 31, 2024, offering Americans immediate relief for the current year.
This would apply to food service workers and beauty workers. The Secretary of the Treasury is slated to publish a list of occupations that “traditionally receive tips” within 90 days of enactment.
Sen. Ted Cruz, R-Tex., sponsored the bill, which supports President Donald Trump’s campaign promise to end the taxing of tips. RSBN reported that the plan was revealed in June of last year while the 47th president was campaigning, and received massive support, including that of the Culinary Workers Union.
The Senate just passed the No Tax on Tips Act in a bipartisan, unanimous 100-0 vote. Now the House must follow through on our promise and deliver for hardworking Americans! pic.twitter.com/efIBj1m8hP
— Rep. Anna Paulina Luna (@RepLuna) May 21, 2025
Rep. Anna Paulina Luna, R-Fla., posted to X about the need for House members to support the act. She wrote, “Now the House must follow through on our promise and deliver for hardworking Americans!”