S. 129 · 119th Congress

No Tax on Tips Act

Introduced on Jan 16, 2025 by Ted Cruz (R-TX). 8 cosponsors, 2 of them from another party. Latest action (May 26, 2025): Held at the desk.

Stage
Passed one chamber
Introduced
Jan 16, 2025
Cosponsors
8
2 from the other party
Policy area
Taxation
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Progress

The furthest stage the measure reached. Simple and concurrent resolutions do not go to the President.

  1. Introduced
  2. Reported by committee
  3. Passed one chamber
  4. 4Passed both chambers
  5. 5Sent to the President
  6. 6Became law

Official title

A bill to amend the Internal Revenue Code of 1986 to eliminate the application of the income tax on qualified tips through a deduction allowed to all individual taxpayers, and for other purposes.

Subjects

  • Accounting and auditing
  • Food industry and services
  • Income tax deductions
  • Service industries
  • Tax administration and collection, taxpayers

Summary

By the Congressional Research Service (Introduced in Senate, Jan 16, 2025). Public domain.

No Tax on Tips Act

This bill establishes a new tax deduction of up to $25,000 for tips, subject to limitations. The bill also expands the business tax credit for the portion of payroll taxes an employer pays on certain tips to include payroll taxes paid on tips received in connection with certain beauty services.

Under the bill, the new tax deduction for tips is limited to cash tips (1) received by an employee during the course of employment in an occupation that customarily receives tips, and (2) reported by the employee to the employer for purposes of withholding payroll taxes. (Under current law, an employee is required to report tips exceeding $20 per month to their employer.)

Further, an employee with compensation exceeding a specified threshold ($160,000 in 2025 and adjusted annually for inflation) in the prior tax year may not claim the new tax deduction for tips.

Finally, the bill expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips to include payroll taxes paid on tips received in connection with barbering and hair care, nail care, esthetics, and body and spa treatments. (Under current law, an employer is allowed a business tax credit for the amount of payroll taxes paid on certain tips received by an employee in connection with providing, delivering, or serving food or beverages.)

Sponsor and cosponsors

Cosponsors by party as of the day they signed on. Original cosponsors signed on the day of introduction.

Ted CruzR-TXSponsor

Democrats · 2

Republicans · 6

Roll calls

Recorded votes on the measure. Most measures move by voice vote or unanimous consent, which record no individual positions.

No recorded roll call on this measure: it moved by voice vote or unanimous consent, or has not reached the floor.

History

Every action as published, oldest first. Roll calls link to how each member voted.

  1. Jan 16, 2025Introduced in Senate
  2. Jan 16, 2025 · SenateRead twice and referred to the Committee on Finance.
  3. May 20, 2025Senate Committee on Finance discharged by Unanimous Consent.
  4. May 20, 2025 · SenateSenate Committee on Finance discharged by Unanimous Consent.
  5. May 20, 2025Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
  6. May 20, 2025 · SenatePassed Senate without amendment by Unanimous Consent. (consideration: CR S2993-2995; text: CR S2993-2994)
  7. May 23, 2025 · SenateMessage on Senate action sent to the House.
  8. May 26, 2025 · HouseReceived in the House.
  9. May 26, 2025 · HouseHeld at the desk.

Committees

Committees and subcommittees the measure was referred to.

Agencies in its committees' jurisdiction

Analisa's mapping of committee jurisdiction to federal agencies; the bill may touch others, or none of these.

Who lobbied on it

Organizations whose lobbying reports (LD-2) name this measure. Spending is what they reported for those quarters on all issues, not on this measure alone.

  1. NATIONAL RESTAURANT ASSOCIATION8 reports
    $4.1M reported (all issues)Federal contractor: NATIONAL RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION$2M in contracts, FY2026AI match · 93%
  2. AMERICAN HOTEL AND LODGING ASSOCIATION7 reports
    $4M reported (all issues)
  3. SAZERAC COMPANY, INC.6 reports
  4. FLEX ASSOCIATION5 reports
  5. Uber Technologies, Inc.5 reports
    $3.7M reported (all issues)Federal contractor: UBER TECHNOLOGIES, INC.$694.1K in contracts, FY2026AI match · 100%
  6. DOORDASH, INC.3 reports
    $1.8M reported (all issues)
  7. AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES2 reports
    $1.5M reported (all issues)
  8. GRUBHUB HOLDINGS INC.2 reports
    $290K reported (all issues)

Reports filed in 2025, 2026.

Sources and method

Every figure on this page traces to these records.

  • Bill status: bills and resolutions, sponsors, actions, subjects and CRS summaries (U.S. Government Publishing Office (GovInfo), from Congress.gov (Library of Congress))GovInfo Bill Status bulk data (Congress.gov; summaries by the Congressional Research Service) · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: Public domain (U.S. Government work, 17 U.S.C. § 105)
  • Members of Congress, their terms, committees and identifiers (The @unitedstates project (from the Biographical Directory of the U.S. Congress, the House and the Senate))unitedstates/congress-legislators: legislators, committees and current committee membership · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: CC0 1.0 (public domain dedication)
  • House roll-call votes (Office of the Clerk, U.S. House of Representatives)Office of the Clerk, U.S. House of Representatives, roll-call vote records · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: Public domain (U.S. Government work, 17 U.S.C. § 105)
  • Senate roll-call votes and DW-NOMINATE scores (Voteview (UCLA Department of Political Science))Lewis, Jeffrey B., Keith Poole, Howard Rosenthal, Adam Boche, Aaron Rudkin, and Luke Sonnet (2026). Voteview: Congressional Roll-Call Votes Database. https://voteview.com/ · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: Free to use with the required citation
  • Lobbying disclosures (LD-1 registrations, LD-2 quarterly reports, LD-203 contribution reports) (Clerk of the U.S. House of Representatives)Clerk of the House, Lobbying Disclosure Act filings (organizations only; lobbyists' names are not loaded) · data current to Oct 5, 2026 · loaded Oct 5, 2026 · license: Public domain (U.S. Government work, 17 U.S.C. § 105)
  • Positions are shown only where a roll call recorded them; voice votes and unanimous consent record none.
  • Money and votes are shown side by side; neither explains the other.