Bill · H.R. 482· House(119-HR-482)

No Tax on Tips Act

Age: 75 years

Florida

Introduced: 1/16/2025
Last activity: 1/16/2025 — Referred to the House Committee on Ways and Means.
Sponsored by: Vern Buchanan
Cosponsors: - 20 - 7

Taxation

Introduced
In Committee

What this bill would do

The No Tax on Tips Act aims to amend the Internal Revenue Code of 1986 to remove income tax on qualified tips. It does this by allowing a deduction for taxpayers that covers the amount of qualified tips received during the year. This deduction is capped at $25,000 and applies to occupations that traditionally received tips on or before December 31, 2023. The bill also extends a credit for employer Social Security taxes paid on employee tips to include beauty service establishments. These changes are intended to take effect for taxable years beginning after December 31, 2024.

Yes· 3 of 6

Does this cut taxes for middle-income families?+6
The bill allows a deduction for qualified tips up to $25,000, which reduces the income tax burden for many middle-income workers in tipped industries.
Would households on low incomes be better off under this?+5
The bill provides tax relief for tipped workers who often fall into lower income brackets.
Would middle-income households be better off under this?+5
The deduction provides a way for middle-income earners in service industries to retain more of their earnings.