119th Congress Taxation
S. 129: No Tax on Tips Act
Passed Senate
- Introduced (completed)
- Passed Senate (completed)
- Passed House (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.
Read the full summary
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
- Kevin Cramer R-NDOriginal
- Catherine Cortez Masto D-NVOriginal
- Steve Daines R-MTOriginal
- Joshua Hawley R-MOOriginal
- Jacky Rosen D-NVOriginal
- Pete Ricketts R-NEOriginal
- Rick Scott R-FLOriginal
- Roger Marshall R-KS
Who scored on this bill
- 1Ted Cruz SponsorDrew cross-party cosponsors, introduced, discharged, passed Senate4 events+60
- 2Catherine Cortez MastoCosponsored; cosponsored bill passed2 events+4
- 2Kevin CramerCosponsored; cosponsored bill passed2 events+4
- 2Steve DainesCosponsored; cosponsored bill passed2 events+4
- 2Joshua HawleyCosponsored; cosponsored bill passed2 events+4
See all scorers and every scoring event
Introductions and cosponsorships count toward weekly caps and show no points.
Other bills by Ted Cruz
- S. 283: Illegal Red Snapper and Tuna Enforcement Act
- S. 3798: Safe Access to Cash Act of 2026
- S. 4009: Falun Gong and Victims of Forced Organ Harvesting Protection Act
- S. 4668: Protect College Sports Act of 2026
- S. 3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026
- S. 759: Modernizing Access to Our Public Oceans Act
History
- Passed the Senate by unanimous consent.
- Introduced in the Senate by Ted Cruz.
Show the full action history (8 actions)
- Received in the House.
- Held at the desk.
- Message on Senate action sent to the House.
- Senate Committee on Finance discharged by Unanimous Consent.
- Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- Passed Senate without amendment by Unanimous Consent. (consideration: CR S2993-2995; text: CR S2993-2994)
- Introduced in Senate
- Read twice and referred to the Committee on Finance.