‘No Tax on Tips’ is now the law: What workers should know about timeline, how paychecks will be impacted

The tax provision, which also applies to overtime pay, is part of President Trump’s One Big Beautiful Bill Act. Here’s the fine print.

The “No Tax on Tips” provision, passed and signed into law on July 4 as part of President Donald Trump’s One Big Beautiful Bill Act, allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes.