The bill would make tips tax-free if approved by Congress
A new bill making its way through Congress could bring meaningful financial relief to casino and hospitality workers across the country. The “No Tax on Tips Act,” introduced by Senator Ted Cruz and supported by Senator Jacky Rosen, passed the Senate this week without a single objection. All 99 senators present agreed to move the legislation forward through unanimous consent, an uncommon outcome in today’s political climate.
The proposal would allow tipped workers earning $160,000 or less in 2025 to deduct up to $25,000 in tip income from their taxes. If passed by the House, it could significantly ease the burden for workers in restaurants, bars, hotels, and casinos—especially in states like Nevada, where tipping is a major part of employee compensation.
Senator Rosen, who represents Nevada, emphasized the importance of the bill to her state, saying it would bring real relief to thousands of working people. She credited both sides of the aisle for backing the plan, and even acknowledged former President Donald Trump’s role in bringing attention to the idea. During a campaign stop in Nevada last year, Trump expressed support for eliminating taxes on tips, a promise that has gained traction among Republican lawmakers.
I just went to the Senate floor and passed our bipartisan No Tax On Tips Act by unanimous consent.
NV has the highest concentration of tipped workers in the nation – and this bill will finally bring them much-deserved relief. pic.twitter.com/KPdmikZ2nJ
— Senator Jacky Rosen (@SenJackyRosen) May 20, 2025
Despite the deeply divided atmosphere in Washington, the bill’s rare bipartisan support signals a shared interest in helping low- and middle-income workers. Cruz said the legislation could be passed on its own or be folded into a larger Republican package aligned with Trump’s economic agenda.
The next step is a vote in the House of Representatives. While it’s unclear how soon that will happen, the strong backing in the Senate suggests the bill has a real shot at becoming law. If it does, many workers in the service industry could see a welcome change in their tax bills.
