If you work in a job where tips are part of your paycheck — like waiting tables, bartending, delivering food, or cutting hair — there’s some exciting news out of Washington this week.
In a rare moment of total agreement, the U.S. Senate has just unanimously passed the “No Tax on Tips Act”, a bill that could put real money back into the pockets of hard-working Americans. Yes, every single senator said yes — no debates, no delays.
So, what does this actually mean for people who earn tips? Let’s break it down.
What’s in the Bill?
The “No Tax on Tips Act” allows workers to deduct up to $25,000 in reported cash tips from their taxable income. That could mean some serious savings at tax time.
But there are a few conditions:
- It only applies to cash tips that are reported to your employer and included in payroll taxes.
- You have to earn $160,000 or less a year (this limit will increase over time with inflation).
- It doesn’t apply to tips that go unreported or are “under the table.”
Bottom line: If you’re reporting your tips, you could soon owe a lot less in taxes.
Who Benefits?
This could be a game-changer for millions of Americans working in the service industry — people who rely on tips to make ends meet, including:
- Restaurant servers and bartenders
- Hotel staff and bellhops
- Hair stylists and nail techs
- Food delivery workers
- Uber and Lyft drivers
In places like Nevada, where tipped workers make up a big part of the workforce, this bill could have an especially big impact.
How Did It Pass?
The bill was originally introduced by Senator Ted Cruz (R-TX) and supported by a bipartisan group, including Nevada Senators Jacky Rosen and Catherine Cortez Masto, both Democrats.
On Tuesday, Senator Rosen brought it to the Senate floor for a unanimous consent vote — a process that usually sees at least one senator object. This time? No one did.
That means the bill passed immediately, without the usual long debates or amendments.
What Lawmakers Are Saying
Here’s what some of the key senators had to say:
Senator Jacky Rosen (D-NV):
“Nevada has more tipped workers per capita than any other state. This bill offers real, immediate relief for families who depend on that extra income.”
Senator Ted Cruz (R-TX):
“This is a win for working people. Whether this bill moves forward on its own or as part of a bigger package, we’re getting it done.”
Senator Chuck Schumer (D-NY):
“The folks earning tips — not billionaires — deserve tax breaks. We’re proud to stand with them.”
What’s Next?
The bill now heads to the House of Representatives, where it’s expected to get strong support, especially since it has backing from both sides of the aisle.
There’s a good chance it’ll pass there too — meaning the “No Tax on Tips Act” could officially become law sometime soon.
Final Thoughts
In a time when Congress rarely agrees on anything, this is one of those feel-good moments where lawmakers actually came together — and made life a little easier for the people who keep our restaurants, salons, hotels, and delivery services running.
If you’ve ever counted on tips to help pay rent or cover groceries, this bill could bring a real and welcome change.