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Forbes
Forbes
20 May 2025


Topline

Senators passed the “No Tax on Tips Act” in a unanimous vote Tuesday, sending the legislation to the House in a win for President Donald Trump, who campaigned last year on removal of taxes on tips.

Sen. Jacky Rosen, D-Nev., presented the bill to the floor on a "unanimous consent" request and unexpectedly faced no objection, meaning the measure automatically passed.

The bill, which proposes a tax deduction of up to $25,000 for cash tips reported to employers, heads to the House, which is also considering a “no tax on tips” measure as part of its Trump agenda megabill that could be voted on later this week.

Sen. Ted Cruz, R-Texas, who introduced the bill, commented on the successful vote Tuesday, saying “the certainty that we will see no tax on tips become the law of the land, I think, is very close to 100%.”

Cruz noted the bill could pass with Trump’s tax bill or be voted in as a standalone law.

This is a developing story. Check back for updates.