I 
119TH CONGRESS 
1ST SESSION 
H. R. 482 
To amend the Internal Revenue Code of 1986 to eliminate the application 
of the income tax on qualified tips through a deduction allowed to 
all individual taxpayers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 16, 2025 
Mr. BUCHANAN (for himself, Mr. DONALDS, Mr. VAN ORDEN, and Mr. 
HORSFORD) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to eliminate 
the application of the income tax on qualified tips 
through a deduction allowed to all individual taxpayers, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Tax on Tips Act’’. 
SEC. 2. DEDUCTION FOR QUALIFIED TIPS. 
(a) IN GENERAL.— 
(1) DEDUCTION ALLOWED.—Part VII of sub-
chapter B of chapter 1 of the Internal Revenue Code 
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of 1986 is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the 
following new section: 
‘‘SEC. 224. QUALIFIED TIPS. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the qualified tips received dur-
ing the taxable year that are included on statements fur-
nished to the employer pursuant to section 6053(a). 
‘‘(b) MAXIMUM DEDUCTION.—The deduction allowed 
by subsection (a) for any taxpayer for the taxable year 
shall not exceed $25,000. 
‘‘(c) QUALIFIED TIPS.—For purposes of this sec-
tion— 
‘‘(1) IN
GENERAL.—The term ‘qualified tip’ 
means any cash tip received by an individual in the 
course of such individual’s employment in an occu-
pation which traditionally and customarily received 
tips on or before December 31, 2023, as provided by 
the Secretary. 
‘‘(2) EXCLUSION FOR CERTAIN EMPLOYEES.— 
Such term shall not include any amount received by 
an individual in the course of employment by an em-
ployer if such individual had, for the preceding tax-
able year, compensation (within the meaning of sec-
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tion 414(q))(4) from such employer in excess of the 
amount in effect under section 414(q)(1)(B)(i).’’. 
(2) PUBLISHED LIST OF OCCUPATIONS TRADI-
TIONALLY RECEIVING TIPS.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary of the Treasury (or the Secretary’s delegate) 
shall publish a list of occupations which traditionally 
and customarily received tips on or before December 
31, 2023, for purposes of section 224(c)(1) of the 
Internal Revenue Code of 1986 (as added by para-
graph (1)). 
(3) CONFORMING AMENDMENT.—The table of 
sections for part VII of subchapter B of chapter 1 
of such Code is amended by redesignating the item 
relating to section 224 as relating to section 225 
and by inserting after the item relating to section 
223 the following new item: 
‘‘Sec. 224. Qualified tips.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period at the end of paragraph (4) and 
inserting ‘‘and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the deduction provided in section 224.’’. 
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(c) NON-APPLICATION
OF CERTAIN LIMITATIONS 
FOR ITEMIZERS.— 
(1) DEDUCTION NOT TREATED AS A MISCELLA-
NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of paragraph (11), by striking 
the period at the end of paragraph (12) and insert-
ing ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(13) the deduction under section 224 (relating 
to qualified tips).’’. 
(2) DEDUCTION
NOT
TAKEN
INTO
ACCOUNT 
UNDER OVERALL LIMITATION.—Section 68(c) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of paragraph (2), by striking 
the period at the end of paragraph (3) and inserting 
‘‘, and’’, and by adding at the end the following new 
paragraph: 
‘‘(4) the deduction under section 224 (relating 
to qualified tips).’’. 
(d) WITHHOLDING.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall modify the tables and 
procedures prescribed under section 3402(a) of the Inter-
nal Revenue Code of 1986 to take into account the deduc-
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tion allowed under section 224 of such Code (as added 
by this Act). 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 3. EXTENSION OF CREDIT FOR PORTION OF EM-
PLOYER SOCIAL SECURITY TAXES PAID WITH 
RESPECT TO EMPLOYEE TIPS TO BEAUTY 
SERVICE ESTABLISHMENTS. 
(a) EXTENSION OF TIP CREDIT TO BEAUTY SERVICE 
BUSINESS.— 
(1) IN GENERAL.—Section 45B(b)(2) of the In-
ternal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(2) APPLICATION ONLY TO CERTAIN LINES OF 
BUSINESS.—In applying paragraph (1) there shall 
be taken into account only tips received from cus-
tomers or clients in connection with the following 
services: 
‘‘(A) The providing, delivering, or serving 
of food or beverages for consumption, if the tip-
ping of employees delivering or serving food or 
beverages by customers is customary. 
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‘‘(B) The providing of beauty services to a 
customer or client if the tipping of employees 
providing such services is customary.’’. 
(2) BEAUTY SERVICE DEFINED.—Section 45B 
of such Code is amended by adding at the end the 
following new subsection: 
‘‘(e) BEAUTY SERVICE.—For purposes of this sec-
tion, the term ‘beauty service’ means any of the following: 
‘‘(1) Barbering and hair care. 
‘‘(2) Nail care. 
‘‘(3) Esthetics. 
‘‘(4) Body and spa treatments.’’. 
(b) CREDIT DETERMINED WITH RESPECT TO MIN-
IMUM WAGE IN EFFECT.—Section 45B(b)(1)(B) of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘as in effect on January 1, 
2007, and’’; and 
(2) by inserting ‘‘, and in the case of food or 
beverage establishments, as in effect on January 1, 
2007’’ after ‘‘without regard to section 3(m) of such 
Act’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
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