S 2780
119th Congress
Senate
Taxation
No Tax on Large Party Tips Act
Introduced: September 11, 2025
Introduced by:
Gallego, Ruben
Democratic
· Arizona
See on congress.gov
Everywhere this bill has been
2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Sep 11, 2025
Read twice and referred to the Committee on Finance.
Sep 11, 2025
Introduced in Senate
Plain-English summary
No Tax on Large Party Tips Act
This bill expands the federal tax deduction for qualified tip income to include tips that are automatically added to a customer's bill and tips that are suggested tips prompted by a business by treating such tips as voluntarily paid.
As background, for 2025 through 2028, individuals may claim a tax deduction of up to $25,000 per year for qualified tips received in occupations that customarily and regularly receive tips. However, one of the conditions for claiming the tax credit is that the tips must be voluntary, determined by the customer, and nonnegotiable.
What's happening now
Read twice and referred to the Committee on Finance.
Committees of jurisdiction
1