No Tax on Tips Act

This bill would let workers who earn tips deduct up to $25,000 in tips from their taxable income, meaning they would pay less in taxes on that money. To qualify, the tips must be cash tips earned in a job where tipping is common, reported to the employer, and the worker must have earned less than $160,000 the year before. The bill also expands an existing tax break for businesses that currently covers payroll taxes employers pay on tips related to food and beverage service, so that it now also covers tips earned in beauty-related jobs like hair care, nail care, and spa treatments.

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