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Tax Relief for Holiday Bonuses: Up to $2,500 Excluded from Income.

This law creates a new tax exclusion for holiday and year-end bonuses, allowing workers to keep more of their bonus money. Individuals can exclude up to $2,500 annually from their gross income if the bonus is paid in November, December, or January. This change applies starting November 1, 2025.
Key points
Holiday or year-end bonuses up to $2,500 per year are excluded from federal income tax calculations.
The exclusion applies specifically to bonuses paid by an employer during November, December, or January.
The $2,500 limit will be adjusted for inflation starting with the 2027 tax year.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6872
Sponsor: Rep. Mackenzie, Ryan [R-PA-7]
Process start date: 2025-12-18
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Holiday Bonus 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_6872.

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 2025-12-18.

What are the main provisions?

Key points include:

  • Holiday or year-end bonuses up to $2,500 per year are excluded from federal income tax calculations.
  • The exclusion applies specifically to bonuses paid by an employer during November, December, or January.
  • The $2,500 limit will be adjusted for inflation starting with the 2027 tax year.
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. Mackenzie, Ryan [R-PA-7].

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 2026-01-23.

CATEGORIES

Taxes Labor