No Tax on Tips Act

This bill creates a new federal tax deduction for cash tips received by workers in occupations that traditionally accept tips (like servers, barbers, and nail technicians) on or before December 31, 2023. It allows a deduction of up to $25,000 per year for tips reported to employers, excluding employees earning over $250,000 from the same employer in the prior year. The Treasury must publish a list of qualifying occupations within 90 days, and the deduction applies to all taxpayers (not just itemizers). The changes take effect for tax years beginning after December 31, 2024.