TIP Improvement Act of 2026

This bill would require employers to pay tipped workers the full federal minimum wage instead of a lower wage that counts tips toward pay, and would require that workers keep all their tips, though tip pooling among tipped employees would still be allowed. It would make the federal tax deduction for qualified tips permanent and double the $25,000 deduction limit for married couples filing jointly. It would bar the deduction for tips paid by certain relatives or received by workers who own part of the business, and would require a taxpayer identification number on the return. It would also count automatic gratuities as qualified tips for workers in hospitality, food and beverage service, and cosmetology, starting with tax years after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Steven Horsford Democrat sponsor
• 1 cosponsors