WASHINGTON DC—On May 20, the U.S. Senate unanimously voted in a bipartisan effort, 100-0 to pass the No Tax on Tips bill exempting American citizens from taxation on their federal income tax. Senator Ted Cruz (R-TX) issued a press release on his webpage with the following statement regarding the passage of the bill:
“President Trump made a promise to the American people that he would eliminate taxes on tips. In Congress, I formed a bipartisan, bicameral coalition to get that done, and in the Senate introduced the No Tax on Tips Act. Today, I went with Senator Rosen to the floor to secure Senate passage of the bill.
This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck. I urge my colleagues in the House to pass this important bill and send it to the President’s desk to be signed into law.”
According to the No Tax on Tips Act of 2025, a list of occupations that are included in the new tax break is to be furnished within the next 90 days. The full text of the bill may be found here.
The No Tax on Tips bill is in accordance with campaign promise President Trump made while as part of his Promises Made, Promises Kept campaign.
On May 20, the following was listed on the White House webpage in an article entitled: “20 Reasons Why Congress Must Unite Behind One Big Beautiful Bill.”
“This makes good on two of President Trump’s cornerstone campaign promises and will benefit hardworking Americans where they need it the most — their paychecks.”
Many patrons have opted to give their wait staff and those whom they choose to tip, cash tips rather than tipping on their credit and debit cards to help those dependent on tips not to be taxed on gratuities earned.
