Legis Daily

No Tax on Large Party Tips Act

USA119th CongressS-2780| Senate 
| Updated: 9/11/2025
Ruben Gallego

Ruben Gallego

Democratic Senator

Arizona

Finance Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This bill aims to clarify the tax treatment of specific types of tips by amending the Internal Revenue Code of 1986. Its primary purpose is to ensure that certain tips are considered voluntarily paid for tax deduction purposes. The legislation explicitly states that any tip automatically added to a customer's bill at the time of payment, along with any tip suggested or prompted by a business, must be treated as voluntarily paid. This clarification is intended to impact how these tips are categorized for tax purposes, potentially affecting their eligibility for qualified tip deductions.
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Timeline
Sep 11, 2025
Introduced in Senate
Sep 11, 2025
Read twice and referred to the Committee on Finance.
  • September 11, 2025
    Introduced in Senate


  • September 11, 2025
    Read twice and referred to the Committee on Finance.

Taxation

No Tax on Large Party Tips Act

USA119th CongressS-2780| Senate 
| Updated: 9/11/2025
This bill aims to clarify the tax treatment of specific types of tips by amending the Internal Revenue Code of 1986. Its primary purpose is to ensure that certain tips are considered voluntarily paid for tax deduction purposes. The legislation explicitly states that any tip automatically added to a customer's bill at the time of payment, along with any tip suggested or prompted by a business, must be treated as voluntarily paid. This clarification is intended to impact how these tips are categorized for tax purposes, potentially affecting their eligibility for qualified tip deductions.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Sep 11, 2025
Introduced in Senate
Sep 11, 2025
Read twice and referred to the Committee on Finance.
  • September 11, 2025
    Introduced in Senate


  • September 11, 2025
    Read twice and referred to the Committee on Finance.
Ruben Gallego

Ruben Gallego

Democratic Senator

Arizona

Finance Committee

Taxation

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted