‘No Tax on Tips Act’ Passes Senate with Unanimous Support

In a rare moment of unity, the U.S. Senate unanimously passed the “No Tax On Tips Act” on Tuesday a key policy victory that delivers on President Donald Trump’s promise to shield working Americans from the IRS’s grip on their hard-earned tips.

Championed by Sen. Ted Cruz (R-TX), the bill was passed through unanimous consent, bypassing standard Senate procedures and fast-tracking a measure that directly benefits millions of Americans in tip-based professions. Cruz described it as a major win for the backbone of the nation’s workforce: the waiters, bartenders, salon workers, and hotel staffers who live paycheck to paycheck.

“President Trump made a promise to the American people that he would eliminate taxes on tips,” Cruz said. “This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers.”

Despite earlier reports suggesting Republicans might delay the vote due to Trump’s larger “one big, beautiful bill” moving through the House, that opposition never materialized. Instead, lawmakers from both sides of the aisle came together to support a clean, standalone measure that reflects common sense economic relief.

Here’s what the bill does:

• Allows workers to deduct up to $25,000 in reported tips from their taxable income, beginning in 2025.

• Includes a $160,000 income cap, ensuring the benefit is targeted to working- and middle-class Americans.

• Expands tax credits for businesses to cover payroll taxes on tips earned from services like haircare and spa treatments.

• Applies to all types of tipped income including cash, card, and check while ensuring protections to prevent abuse.

The Senate passage now sends the bill to the House, which is working on a broader legislative package that includes this same provision along with other Trump-driven priorities: no tax on overtime pay, no tax on auto loan interest, and permanent 2017 tax cuts. This sweeping bill is expected to move through the reconciliation process and may arrive on President Trump’s desk in the coming weeks.

Let’s be clear this isn’t just about tax relief. It’s about fairness. It’s about freedom. For too long, the IRS has treated service workers like second-class citizens, demanding a cut of tips that often barely cover rent or groceries. Now, under the leadership of Trump-aligned lawmakers, those workers are finally being heard.

It’s also worth noting the hypocrisy from the left. Vice President Kamala Harris tried to claim credit for Trump’s idea during the 2024 campaign, but it was Republicans not Democrats who actually got it done. While Democrats were busy pushing massive spending bills and climate extremism, it was conservatives who fought for the waitress and the valet.

As the bill heads to the House, it’s a reminder that pro-worker doesn’t mean pro-government. Sometimes, the best thing Washington can do is get out of the way and let Americans keep more of what they earn.

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