The "no tax on tips" provision within the Senate version of the One Big Beautiful Bill Act allows tipped workers to deduct tip income from their federal taxable income, up to $25,000 annually. The deduction phases out for individuals earning more than $150,000 and couples earning over $300,000.

Republicans are trying to create tax deductions for tips, car loan interest and overtime pay. Experts say they wouldn’t benefit low earners much.