No Tax on Large Party Tips Act
- Last Action
- 9/11/2025
Actions
- 2025-09-11Read twice and referred to the Committee on Finance.
- 2025-09-11Introduced in Senate
CRS Summary
As of 2025-09-11 (00)
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.
Sourced from Congress.gov (public domain).
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.