The Working for Tips Tax Relief Act of 2025

This bill would let workers deduct reported cash tips from their federal taxable income, up to $35,000 per year. The deduction would shrink for single filers with income between $50,000 and $75,000 (or $100,000 to $150,000 for joint filers) and would not be available above those levels. Tips must be voluntary, come from jobs that customarily received tips by the end of 2024, and the taxpayer must provide a Social Security number; married people must file jointly. The Treasury would publish a list of tipped occupations within 90 days, may adjust thresholds based on living wage estimates, report to Congress every two years starting in 2027, and start a pilot program to study a permanent extension when the deduction expires.

Full text and official record on Congress.gov

Sponsors

• Donald G. Davis Democrat sponsor
• 1 cosponsors