Congress·In Committee·H.R. 6295

Congress bill would let many tipped workers deduct up to $35,000 in reported tips from taxes

The Working for Tips Tax Relief Act of 2025

4 months ago·View on Congress.gov

⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

Lets eligible tipped workers deduct reported cash tips from their taxable income, up to $35,000 a year.
The tax break phases down as income rises and ends for people over $75,000 in income ($150,000 for married couples filing jointly).
Only tips in jobs that traditionally received tips by the end of 2024 count, and certain higher-paid service fields are excluded.
To claim it, workers must report the tips and include a Social Security number; married couples generally must file a joint return.
Treasury must publish a list of eligible tip-based jobs, update withholding rules, and report to Congress on who uses it and its effects.

TaxesLabor EmploymentConsumer Protection

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Negative Impacts(1)

Student Loans

Hurts

Mixed Impacts(1)

Small Business Owner

Neutral

Milestones

2 milestones2 actions

Nov 25, 2025House

Referred to the House Committee on Ways and Means.

Nov 25, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 90 days after the bill is enacted

Treasury publishes the list of jobs that counted as “traditionally tipped” on or before Dec. 31, 2024

Workers and employers can check whether a job is eligible for the tip deduction and plan for tax season.

Before or during the first tax year the deduction applies

IRS/Treasury updates paycheck withholding rules to reflect the new tip deduction

Some workers could see less federal income tax withheld from paychecks, which can increase take-home pay during the year (but could also change refunds).

2027-07-01

Treasury sends the first required report to Congress on how the deduction is being used

Could influence whether Congress extends, expands, or changes the program based on real results.