119th Congress Taxation
H.R. 482: No Tax on Tips Act
Introduced
- Introduced (completed)
- Passed House (not reached)
- Passed Senate (not reached)
- To the President (not reached)
- Became law (not reached)
Summary
This bill establishes a new tax deduction of up to $25,000 for tips, subject to limitations. The bill also expands the business tax credit for the portion of payroll taxes an employer pays on certain tips to include payroll taxes paid on tips received in connection with certain beauty services.
Under the bill, the new tax deduction for tips is limited to cash tips (1) received by an employee during the course of employment in an occupation that customarily receives tips, and (2) reported by the employee to the employer for purposes of withholding payroll taxes. (Under current law, an employee is required to report tips exceeding $20 per month to their employer.)
Further, an employee with compensation exceeding a specified threshold ($160,000 in 2025 and adjusted annually for inflation) in the prior tax year may not claim the new tax deduction for tips.
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Finally, the bill expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips to include payroll taxes paid on tips received in connection with barbering and hair care, nail care, esthetics, and body and spa treatments. (Under current law, an employer is allowed a business tax credit for the amount of payroll taxes paid on certain tips received by an employee in connection with providing, delivering, or serving food or beverages.)
Written by the Congressional Research Service, Library of Congress.
Roll calls
No roll call votes have been held on this bill.
Amendments
No amendments were offered to this bill.
Cosponsors
- Byron Donalds R-FLOriginal
- Steven Horsford D-NVOriginal
- Derrick Van Orden R-WIOriginal
- Brad Finstad R-MN
- William Timmons R-SC
- Claudia Tenney R-NY
- Nicholas Langworthy R-NY
- Mike Ezell R-MS
- Abraham Hamadeh R-AZ
- Scott Perry R-PA
- Gus Bilirakis R-FL
- Michael Rulli R-OH
- Brandon Gill R-TX
- Anna Luna R-FL
- Mike Collins R-GA
- Richard Hudson R-NC
- Ashley Hinson R-IA
- Nathaniel Moran R-TX
- Mark Amodei R-NV
- Eugene Vindman D-VA
- Cleo Fields D-LA
- Thomas Kean R-NJ
- Brian Mast R-FL
- Donald Davis D-NC
- Chris Pappas D-NH
- Josh Harder D-CA
- Marie Gluesenkamp Perez D-WA
Who scored on this bill
- 1Vern Buchanan SponsorDrew cross-party cosponsors, introduced, reached a cosponsor milestone3 events+12
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Introductions and cosponsorships count toward weekly caps and show no points.
Other bills by Vern Buchanan
History
- Introduced in the House by Vern Buchanan.
Show the full action history (2 actions)
- Introduced in House
- Referred to the House Committee on Ways and Means.