No Tax on Tips Act
Official title: To amend the Internal Revenue Code of 1986 to eliminate the application of the income tax on qualified tips through a deduction allowed to all individual taxpayers, and for other purposes.
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Referred to the House Committee on Ways and Means.
No Tax on Tips Act
This bill establishes a new tax deduction of up to $25,000 for tips, subject to limitations. The bill also expands the business tax credit for the portion of payroll taxes an employer pays on certain tips to include payroll taxes paid on tips received in connection with certain beauty services.
Under the bill, the new tax deduction for tips is limited to cash tips (1) received by an employee during the course of employment in an occupation that customarily receives tips, and (2) reported by the employee to the employer for purposes of withholding payroll taxes. (Under current law, an employee is required to report tips exceeding $20 per month to their employer.)
Further, an employee with compensation exceeding a specified threshold ($160,000 in 2025 and adjusted annually for inflation) in the prior tax year may not claim the new tax deduction for tips.
Finally, the bill expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips to include payroll taxes paid on tips received in connection with barbering and hair care, nail care, esthetics, and body and spa treatments. (Under current law, an employer is allowed a business tax credit for the amount of payroll taxes paid on certain tips received by an employee in connection with providing, delivering, or serving food or beverages.)
- Introduced in House Formatted Text PDF Formatted XML
- UBER TECHNOLOGIES, INC.
- NATIONAL RESTAURANT ASSOCIATION
- AMERICAN HOTEL & LODGING ASSOCIATION
- SCHOENING STRATEGIES, LLC
- NATIONAL RESTAURANT ASSOCIATION
- AMERICAN HOTEL & LODGING ASSOCIATION
Bodies those filers lobbied
- HOUSE OF REPRESENTATIVES
- SENATE
- Labor, Dept of (DOL)
- Transportation, Dept of (DOT)
- Commerce, Dept of (DOC)
- Executive Office of the President (EOP)
- Federal Trade Commission (FTC)
- White House Office
Cite this page
U.S. Congress. (2026). H.R. 482: No Tax on Tips Act. 119th Congress. Open America. https://openamerica.io/bill/119-HR-482/
"H.R. 482: No Tax on Tips Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-482/.
H.R. 482, 119th Cong. (2026), https://openamerica.io/bill/119-HR-482/.
[H.R. 482: No Tax on Tips Act](https://openamerica.io/bill/119-HR-482/)