What to Know About No Tax on Tips in ‘One Big Beautiful Bill’

The bill would halt tax on most tips till 2028.
What to Know About No Tax on Tips in ‘One Big Beautiful Bill’
Waitress Jessie Spaulding serves customers at Shooters Grill in Rifle, Colo. on April 24, 2018. Emily Kask/AFP via Getty Images
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Tax cut provisions in the Republican-backed One Big Beautiful Bill (OBBB) would mean a reduction in taxes for workers who earn their income through tips.

The House-passed version of the legislation from the OBBB eliminates federal income taxes on tips for those working jobs that traditionally survive on tips, as long as they’re making less than $160,000 in 2025.