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Jan 09, 2026

Bill to Make Tips Tax-Free

        Sen. Ted Cruz introduces bill to make tips tax-free | FOX 4 Dallas-Fort  Worth In a rare moment of bipartisan agreement, the U.S. Senate has unanimously passed the No Tax on Tips Act, a bill that would exempt tip income from federal taxation, providing direct financial relief to millions of American service industry workers.  

Introduced by Senator Ted Cruz of Texas and co-sponsored by Senator Jacky Rosen of Nevada, the legislation is designed to support workers in sectors like hospitality, food service, and delivery—jobs where tipping often makes up the majority of income.

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