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FLORIDA - Senators Rick Scott and Ted Cruz have introduced the "No Tax on Tips Act," aiming to exempt up to $25,000 in tipped income from federal taxes for service industry workers starting in 2025.
On Thursday, Florida Senator Rick Scott joined Texas Senator Ted Cruz in introducing the “No Tax on Tips Act,” a bill designed to exempt tipped wages from federal income tax.
The proposed legislation would allow employees in traditionally tipped industries to deduct 100% of their tipped income—up to $25,000—when filing taxes.
Eligible workers under this bill include restaurant servers, bartenders, delivery drivers, barbers, nail technicians, and others in roles where tipping is customary.
Support for the bill is already growing within the service industry.
Sean Kennedy, Executive Vice President for Public Affairs at the National Restaurant Association, praised the proposal, stating it would "put cash back in the pocket of a significant number of workers."
The bill has also gained political momentum.
Former President Donald Trump endorsed the concept of eliminating taxes on tips during his campaign, and some Democratic lawmakers have expressed support for the initiative.
"President Trump is laser-focused on getting our economy back on track, and passing this bill ASAP will be a great start," Senator Scott said.
Additional co-sponsors of the bill include Senators Jacky Rosen, Catherine Cortez Masto, Steve Daines, and Pete Ricketts.
In the U.S. House of Representatives, Florida Representatives Vern Buchanan and Byron Donalds introduced companion legislation.
“Florida’s tourism-driven economy thrives because of the hardworking men and women in our restaurant and hospitality industries, many of whom rely on tipped wages to support their families,” Rep. Buchanan stated.
“This bill ensures these essential workers keep more of their hard-earned money without interference from Washington.”
Tax experts estimate that exempting tipped income could cost between $150 billion and $250 billion over the next decade.
If enacted, the tax exemption would apply to income earned in taxable years starting after December 31, 2024.