# 119-s-129: No Tax on Tips Act

119-s-129, No Tax on Tips Act, is a 119th Congress bill sponsored by Sen. Cruz, Ted [R-TX] (R-TX); status passed_senate; PRIA reads it as touching household money (as of 2026-07-25).

- Canonical: https://policyrisk.com/legislation/119-s-129
- As of: 2026-07-25
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-129
- Congress: 119
- Title: No Tax on Tips Act
- Status: passed_senate
- Introduced: 2025-01-16
- Sponsor: Sen. Cruz, Ted [R-TX] (R-TX)
- Cosponsors: 8
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-07-25

## Summary

**Would create a new tax deduction that removes federal income tax on many cash tips, capped at $25,000 per taxpayer.** It would also expand the employer payroll-tax credit to cover many beauty services like barbering, hair care, nail care, esthetics, and body and spa treatments. - Many tipped workers would be able to deduct up to $25,000 in reported cash tips when they file. Employees with prior-year compensation above $160,000 in 2025 would not qualify for the deduction. - Salons, barbershops, spas, and similar businesses would be eligible for the business tax credit for the employer share of payroll taxes on tips, matching the existing credit for food and beverage services. - The Treasury would have 90 days to publish a list of occupations that customarily receive tips as of Dec. 31, 2023, withholding tables must be adjusted to reflect the deduction, and the changes apply to tax years beginning after Dec. 31, 2024.

## Cosponsors (8)

- Sen. Daines, Steve [R-MT] (R-MT), 2025-01-16T00:00:00.000Z
- Sen. Rosen, Jacky [D-NV] (D-NV), 2025-01-16T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2025-01-16T00:00:00.000Z
- Sen. Cortez Masto, Catherine [D-NV] (D-NV), 2025-01-16T00:00:00.000Z
- Sen. Hawley, Josh [R-MO] (R-MO), 2025-01-16T00:00:00.000Z
- Sen. Scott, Rick [R-FL] (R-FL), 2025-01-16T00:00:00.000Z
- Sen. Cramer, Kevin [R-ND] (R-ND), 2025-01-16T00:00:00.000Z
- Sen. Marshall, Roger [R-KS] (R-KS), 2025-01-27T00:00:00.000Z

## Provisions PRIA read

- Deduction for cash tips up to $25K: benefit, high. If enacted, you would be able to deduct up to $25,000 each year of cash tips you reported to your employer. This would reduce your taxable income even if you do not itemize. Your job would need to be on a Treasury list of occupations that customarily received tips by December 31, 2023. You would no…
- Tip credit extended to beauty services: benefit, high. If enacted, employers could claim the existing Social Security tip credit for tips from beauty services when tipping is customary. Beauty services would include hair, barbering, nails, esthetics, and body or spa treatments. The credit already covers food and drink tips and would keep that. For food…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-556: Enhanced Iran Sanctions Act of 2025
- 119-s-1032: Major Richard Star Act
- 119-s-315: AM Radio for Every Vehicle Act of 2025
- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.
- 119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewellyn Kyl, former Senator for the State of Arizona.

## Sources
- [119-s-129 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/129)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-556: Enhanced Iran Sanctions Act of 2025](https://policyrisk.com/legislation/119-s-556)
- [119-s-1032: Major Richard Star Act](https://policyrisk.com/legislation/119-s-1032)
- [119-s-315: AM Radio for Every Vehicle Act of 2025](https://policyrisk.com/legislation/119-s-315)
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewel…](https://policyrisk.com/legislation/119-sres-897)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-129 (as of 2026-07-25).