Senate unanimously codifies Trump's 'No Tax on Tips' policy

May 20, 2025 - 17:28
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Senate unanimously codifies Trump's 'No Tax on Tips' policy


The Senate unanimously passed President Donald Trump's popular policy eliminating federal income taxes on tipped wages, fulfilling yet another campaign promise.

The No Tax on Tips Act passed with 100 votes in the Senate on Tuesday, with Republican Sen. Ted Cuz of Texas and Democratic Sen. Jacky Rosen of Nevada spearheading the legislation. Trump campaigned on this very issue, and it has become a popular feature of his "big, beautiful bill" in the House, marking another bipartisan win for Americans.

'This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck.'

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"President Trump made a promise to the American people that he would eliminate taxes on tips," Cruz said in a statement following the bill's passage. "In Congress, I formed a bipartisan, bicameral coalition to get that done, and in the Senate introduced the No Tax on Tips Act. Today, I went with Senator Rosen to the floor to secure Senate passage of the bill."

"This legislation will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue- collar workers, the very people who are living paycheck-to-paycheck," Cruz added. "I urge my colleagues in the House to pass this important bill and send it to the President's desk to be signed into law."

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Photo by Anna Moneymaker/Getty Images

It's not just Trump allies championing this bill. Although Rosen couldn't resist making a jab at the president, she ultimately embraced the legislation as a victory for her constituents.

"For so many service and hospitality workers, tips aren't extra, it's part of their income that they use to make ends meet," Rosen said. "Tips are how Nevadans pay their rent, cover their groceries, take care of their families, their kids."

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