Senate Passes No Tax on Tips Act Unanimously

The U.S. Senate unanimously passed the No Tax on Tips Act, a bipartisan bill introduced by Sen. Ted Cruz and Sen. Jacky Rosen, which would eliminate federal income taxes on cash tips reported by employees, providing significant financial relief to service and hospitality workers. The legislation, a key campaign promise of President Donald Trump, creates a tax deduction of up to $25,000 for tips, limited to workers earning $160,000 or less, and aims to make this exemption permanent. Sen. Rosen emphasized the importance of the bill for Nevada, a state with the highest per capita concentration of tipped workers, noting that tips are essential income for many families. The bill passed by unanimous consent in the Senate and now moves to the House, where it may be passed separately or included in broader Republican budget proposals. The bipartisan support highlights a rare moment of agreement aimed at easing the financial burden on millions of workers who rely on tips as a vital part of their earnings. Despite some opposition to related House budget plans, the Senate bill’s passage signals strong momentum toward ending federal taxation on tips.