HERE’S A TIP:
Support “No Taxes on Tips”
Thank you for your support of our “No Tax on Tips” campaign.
Because of collective action from supporters like you, tax deductions for tip-earners were enacted into law in July 2025. Continue your support of tax deductions for tip earners by staying informed via the information listed below.
The law establishes a new tax deduction of up to $25,000 for tip-earners, meaning tips stay where they were intended–as a sign of gratitude for the great service.
Local restaurant and bar staff. On average, tips make up 23% of restaurant and bar staff’s annual income. The law puts tip-earners’ hard-earned money back in their pockets where it belongs.
An average restaurant or bar staff member could save as much as $4,000 per year through the tax deduction and difference in owed federal income taxes.
Most tips went directly into the pocket of local restaurant or bar staff, but a significant portion was taxed and sent to the government, not their personal bank account. We helped to reduce that taxed portion and put money back in tip-earners’ pockets.
Local businesses currently pay a payroll tax on employees’ income, including the tipped income reported by the employees themselves. The bills would expand the business tax credit eligibility, ultimately reducing the taxes owed by small businesses.
How can I help?
Join Sazerac in support of restaurant and bar staff by staying informed and continuing to support tip-earners wherever you enjoy their service!
