No Tax on Large Party Tips Act

S. 2780 · 119th Congress · Sep 11, 2025 · Lineage

A BILL

To clarify the treatment of certain tips for purposes of the tax deduction for qualified tips.

This Act may be cited as the “No Tax on Large Party Tips Act”.

(a)

In general— For purposes of section 224(d)(2)(A) of the Internal Revenue Code of 1986—

(1)

any tip automatically added to a customer’s bill at the time of payment, and

(2)

any tip that is a suggested tip prompted by a business,