The U.S. Senate on Tuesday unanimously passed a bill to eliminate federal taxes on tipped income, delivering a major legislative win for President Trump and advancing one of his key economic proposals aimed at working-class Americans.
The legislation, known as the No Tax on Tips Act, was brought forward by Senator Jacky Rosen of Nevada, who initially anticipated opposition. However, the bill sailed through without objection after Senator Ted Cruz of Texas offered support. The move marks a rare moment of bipartisan agreement in the upper chamber, with both parties acknowledging the financial struggles faced by millions of Americans who rely on tips to make ends meet.
“This is great news for Nevada,” Senator Rosen said during her remarks, highlighting that more than a quarter of the workforce in her state depends on tip-based income. She praised the bill as a practical solution to ease the financial burden on hospitality and service workers facing rising costs nationwide. “This legislation offers immediate relief while we continue to find broader solutions for working families,” she added.
President Trump first introduced the idea during a campaign visit to Nevada, positioning the proposal as part of his broader tax relief agenda. Senator Cruz, in his remarks supporting the bill, credited Trump with crafting a politically strategic initiative that resonated strongly with voters across the country. “This is political genius,” Cruz said. “One way or another, no tax on tips is going to become law.”
The bill allows a tax deduction of up to $25,000 in tips and is expected to be passed in the House of Representatives either as a standalone measure or as part of Trump’s larger tax package, which has been described as the “big, beautiful bill” designed to expand and extend his signature tax cuts.
Nevada Senator Catherine Cortez Masto joined her colleague Rosen in emphasizing the unique economic dynamics of their state, noting that Nevada leads the nation in tipped workers per capita. “For many, tips are not just a bonus — they are a vital part of their income,” Rosen stated.
