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Tax Relief for Tipped Workers: Income Exclusion for Tips

This bill introduces a temporary tax relief for individuals earning tips, allowing them to exclude a portion of their reported tips from taxable income. It aims to support low- and moderate-income workers in eligible service sectors, increasing their disposable income.
Key points
A portion of reported tips, up to $35,000 annually, will be excluded from gross income.
The tax relief is designed for low- and moderate-income earners; individuals with higher incomes (above $75,000 for singles, $150,000 for joint filers) will not qualify.
These provisions are temporary, applying from the 2026 tax year through the end of the 2028 tax year, with a future pilot program planned.
To qualify, tips must be properly reported, and the taxpayer must provide their Social Security Number; the exclusion is available even for non-itemizers.
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Introduced
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Additional Information
Print number: 119_HR_6295
Sponsor: Rep. Davis, Donald G. [D-NC-1]
Process start date: 2025-11-25
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

The Working for Tips Tax Relief Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6295.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-11-25.

What are the main provisions?

Key points include:

  • A portion of reported tips, up to $35,000 annually, will be excluded from gross income.
  • The tax relief is designed for low- and moderate-income earners; individuals with higher incomes (above $75,000 for singles, $150,000 for joint filers) will not qualify.
  • These provisions are temporary, applying from the 2026 tax year through the end of the 2028 tax year, with a future pilot program planned.
  • To qualify, tips must be properly reported, and the taxpayer must provide their Social Security Number; the exclusion is available even for non-itemizers.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Davis, Donald G. [D-NC-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-13.

CATEGORIES

Taxes Labor