No Tax on Large Party Tips Act
Introduced Sep 11, 2025 by Sen. Ruben Gallego
It's waiting on a committee vote to reach the full chamber. Most bills never leave this stage.
This bill expands the federal tax deduction for qualified tip income to include tips that are automatically added to a customer's bill and tips that are suggested tips prompted by a business by treating such tips as voluntarily paid.
As background, for 2025 through 2028, individuals may claim a tax deduction of up to $25,000 per year for qualified tips received in occupations that customarily and regularly receive tips. However, one of the conditions for claiming the tax credit is that the tips must be voluntary, determined by the customer, and nonnegotiable.
Summary by the Congressional Research Service.
No floor votes yet — it hasn't reached the floor of either chamber.