On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act, a sweeping package that cemented expiring tax cuts while rewriting how work itself is rewarded. Hidden in its dense legal text, the No Tax on Tips Act turned whispered hopes in break rooms and back kitchens into law: tips remain reportable, but voluntary gratuities are now shielded from federal income tax, instantly swelling paychecks for those who count every dollar between rent and groceries.
The law didn’t stop there. It carved out tax-free overtime, expanded deductions for seniors, and carefully excluded high-earning professionals in certain service trades to keep the windfall targeted at genuinely tipped workers. Supporters hail it as long-overdue justice for people living shift to shift; critics see a budget time bomb. Yet in crowded diners, bustling hotels, and late-night rideshares, one feeling dominates: for once, the tax code seems to remember who actually keeps the country running.
