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In a landmark move for service industry workers, the U.S. Senate unanimously passed the No Tax on Tips Act (Senate Bill 129) on May 20, 2025. The decision marks a significant step toward eliminating federal income taxes on tips. The legislation aims to provide tax relief for workers like servers, bartenders and delivery drivers. But when does No Tax on Tips start? What does No Tax on Tips mean for tipped workers?
What you need to know about the No Tax on Tips Act
The No Tax on Tips Act, formally known as Senate Bill 129, was introduced on January