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The U.S. Senate voted unanimously to pass legislation ending federal taxes on tips.
Sen. Jacky Rosen (D-NV) brought up the bill for a “unanimous consent” request, meaning any senator can block it.
President Trump campaigned on the proposal of ending taxes on tips.
“President Trump made a promise to the American people that he would eliminate taxes on tips. Today, I went with Senator Rosen to the floor to secure Senate passage of the bill. I urge my colleagues in the House to pass this important bill and send it to the President’s desk,” Sen. Ted Cruz (R-TX) said.
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President Trump made a promise to the American people that he would eliminate taxes on tips.
Today, I went with Senator Rosen to the floor to secure Senate passage of the bill.
I urge my colleagues in the House to pass this important bill and send it to the President’s… pic.twitter.com/4vqk1uEzVB
— Senator Ted Cruz (@SenTedCruz) May 20, 2025
The Hill reports:
Sen. Jacky Rosen (D-Nev.) brought the bill to the floor with the expectation that it would be blocked, but Sen. Ted Cruz (R-Texas) declined to. It passed via unanimous consent (UC).
“I just want to say: This is great news for Nevada,” Rosen said after the bill was advanced, lauding the work of the millions of hospitality and service workers in her home state, who she says are being “squeezed by rising costs.”
“This bill is not the be-all, end-all, but it’s going to offer immediate financial relief while the Senate continues to work to lower costs and find other avenues of relief for hardworking families,” she said before yielding the floor.
Trump unveiled the idea last year during a campaign stop in Nevada, which is home to scores of tipped workers.
BREAKING: U.S. Senate unanimously passes the No Tax on Tips Act
80% chance it becomes a law this year pic.twitter.com/dHClV56D5y
— Kalshi (@Kalshi) May 20, 2025
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JUST IN: Senate Unanimously Passes No Tax on Tips Act, Fulfilling Trump Campaign Promise
Trump first announced the proposal in Las Vegas, Nevada, stating: “When I get into office, we’re not going to charge taxes on tips—people making tips.”
Promises Made, Promises Kept! pic.twitter.com/hOrUsWfNcF
— RedWave Press (@RedWave_Press) May 20, 2025
Per NBC News:
The legislation would create a tax deduction worth up to $25,000 for tips, limited to cash tips that workers report to employers for withholding purposes on payroll taxes. The tax break would also be restricted to employees who earn $160,000 or less in 2025, an amount that will rise with inflation in coming years.
It was introduced in January by Sen. Ted Cruz, R-Texas, and a bipartisan group of co-sponsors including Nevada’s two Democratic senators, Jacky Rosen and Catherine Cortez Masto.
Rosen brought the bill up in the Senate for a “unanimous consent” request Tuesday, which means any senator can block it. The process is typically used for more mundane matters, and bills are routinely called up and thwarted by objections. Consequential tax bills usually follow a more complex process. But none of the 99 other senators objected to Rosen’s proposition, which led to the legislation’s passing.
“Nevada has more tipped workers per capita than any other state. So this bill would mean immediate financial relief for countless hard-working families,” Rosen said. “‘No Tax on Tips’ was one of President Trump’s key promises to the American people, which he unveiled in my state of Nevada. And I am not afraid to embrace a good idea, wherever it comes from.”
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