No Tax on Tips Fact Sheet

Summary The American Hotel & Lodging Association highlights a recent federal law, "No Tax on Tips," which provides a tax deduction of up to $25,000 for eligible employees on reported tips for tax years 2025-2028. This deduction benefits individuals in tipped occupations with an AGI under $150,000 (or $300,000 for joint filers), phasing out above these thresholds.