Understanding the New “No Tax on Tips” Law and What Employers Need to Do
Posted by Fisher Phillips on Sep 8th 2025
What Happened: The "New Tax on Tips" Law
As part of the “Big Beautiful Bill” signed July 4, 2025, tipped and certain non-exempt workers may deduct up to $25,000 in reported tip income from federal taxable income between tax years 2025 and 2028. Eligibility requires individuals to earn under $150,000 (or $300,000 for joint filers). Only