“No Tax on Tips” Became Law, With Limits

P.L. 119-21 lets eligible workers deduct up to $25,000 in qualified tips from federal income tax for tax years 2025 through 2028, with the deduction phasing out at higher incomes. Tips are still subject to Social Security and Medicare payroll taxes. We count this as a promise kept, with those limits noted.

How Congress voted

Senate passage of H.R. 1 Bill Passed
Party	Yes	No
Republicans	50	3
Democrats	0	45
Independents	0	2
Total	50	50

Tied 50–50; the Vice President cast the deciding vote.

House final passage of H.R. 1 Passed
Party	Yes	No
Republicans	218	2
Democrats	0	212
Total	218	214

Sources

Congress.gov — H.R. 1, 119th Congress
CRFB — What’s in the law

Corrections

None. If something here is wrong, write to corrections@notgop.com with a source.