no tax on tips
Definition
A slogan popularized during Donald Trump's 2024 presidential campaign, proposing the elimination of federal income taxes on gratuities received by service workers.
A provision in the One Big Beautiful Bill Act (signed July 2025), allowing a deduction of up to $25,000 in qualified tip income for eligible occupations, as clarified by IRS guidance in January 2026.
Examples
Thanks to 'no tax on tips,' my bartender buddy is hoarding his gratuities like a squirrel prepping for a tax apocalypse.
The 'no tax on tips' deduction is a game-changer – now waitstaff can afford that second job without the government's cut.
President Trump hailed 'no tax on tips' at his rally, where a Pennsylvania mom shared how her $24,999 in tips finally funded a modest family feast.
With the IRS's list of 68 qualifying jobs for 'no tax on tips,' even your Uber Eats driver is plotting a tax-free empire.