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yesterday

Senate Unanimously Passes 'No Tax on Tips Act,' Advancing Key Trump Campaign Promise

The bipartisan bill, which eliminates federal taxes on reported cash tips up to $25,000 for eligible workers, now moves to the House for final approval.

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Jacky Rosen, D-Nev., in Dirksen Building on March 15, 2022.
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The Senate unanimously passed President Trump’s “No tax on tips” act.

Overview

  • The Senate passed the 'No Tax on Tips Act' via unanimous consent on May 20, 2025, with no senators objecting to the measure.
  • The legislation establishes a federal tax deduction of up to $25,000 for reported cash tips, limited to workers earning $160,000 or less in 2025, with the threshold adjusted for inflation in future years.
  • Introduced in January by Sen. Ted Cruz with bipartisan cosponsors, including Nevada Senators Jacky Rosen and Catherine Cortez Masto, the bill aims to provide financial relief to service industry employees.
  • Nevada, home to the highest per capita population of tipped workers, is a focal point for the policy, with approximately 25% of its workforce relying on tips.
  • The bill now heads to the House of Representatives, where it is expected to pass either as standalone legislation or as part of a broader tax package tied to President Trump's agenda.