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S 129 119th Congress Senate Taxation Accounting and auditing Food industry and services Income tax deductions Service industries Tax administration and collection, taxpayers

No Tax on Tips Act

Introduced: January 16, 2025 Introduced by: Cruz, Ted Republican · Texas See on congress.gov
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 Everywhere this bill has been 8 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
May 26, 2025
Held at the desk.
May 26, 2025
Received in the House.
May 23, 2025
Message on Senate action sent to the House.
May 20, 2025
Passed Senate without amendment by Unanimous Consent. (consideration: CR S2993-2995; text: CR S2993-2994)
May 20, 2025
Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
May 20, 2025
Senate Committee on Finance discharged by Unanimous Consent.
Jan 16, 2025
Read twice and referred to the Committee on Finance.
Jan 16, 2025
Introduced in Senate
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 Plain-English summary Congressional Research Service

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.)  

What's happening now May 26, 2025

Held at the desk.

 Related & companion bills 1
  • HR 482 Identical bill No Tax on Tips Act
 Bill text 2 versions

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 37

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

See all 37 filings →
 Cosponsors 8
All 8 Democratic 2 Republican 6
R
Marshall, Roger
Kansas · Jan 27, 2025
 D
Cortez Masto, Catherine
Nevada · Jan 16, 2025
 R
Cramer, Kevin
North Dakota · Jan 16, 2025
 R
Daines, Steve
Montana · Jan 16, 2025
 R
Hawley, Josh
Missouri · Jan 16, 2025
 R
Ricketts, Pete
Nebraska · Jan 16, 2025
 D
Rosen, Jacky
Nevada · Jan 16, 2025
 R
Scott, Rick
Florida · Jan 16, 2025
Cite this page click to expand
APA
U.S. Congress. (2026). S. 129: No Tax on Tips Act. 119th Congress. Open America. https://openamerica.io/bill/119-S-129/
MLA
"S. 129: No Tax on Tips Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-129/.
Bluebook (legal)
S. 129, 119th Cong. (2026), https://openamerica.io/bill/119-S-129/.
Markdown link
[S. 129: No Tax on Tips Act](https://openamerica.io/bill/119-S-129/)
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