No Tax on Tips Act 2025: What It Means for Workers and Employers
The "No Tax on Tips Act" has taken the political and economic spotlight in 2025. Announced by President Joe Biden and widely discussed across social media, news outlets, and restaurant break rooms, this proposed legislation could significantly change how tips are treated under federal tax law. But what exactly is the No Tax on Tips Act? Who benefits from it? And what do employers and employees need to prepare for if it becomes law? Let’s dive deep into the key details of this trending proposal and unpack its potential impacts. 🔍 What Is the No Tax on Tips Act? The No Tax on Tips Act of 2025 is a proposed federal bill introduced with the goal of exempting employee tips from federal income and payroll taxes . This means if you're a waiter, bartender, hotel worker, or anyone in a tipped position, you might soon keep 100% of your tips—untaxed . The bill is modeled after similar conservative proposals but gained widespread attention after President Biden publicly endo...