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No Tax on Tips Update: Senate Unanimously Passes the Bill to the House

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In a surprising act of bipartisan unity, the US Senate unanimously passed the No Tax of Tips Bill on May 20, 2025. Similar to the No Tax on Overtime Act, the legislation seeks to limit the taxes levied on the income earned by an individual, but instead of overtime hours, the focus here is on the tips earned during a shift. The Senate Bill 129 (S.129) was first discussed during the presidential campaign and formally introduced in January 2025 by Senator. Ted Cruz.

Since then, it has garnered support from a bipartisan group of senators, which came as a real

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