It’s Official—No Tax on Tips, No Tax on Overtime Through 2028
One of President Donald Trump’s 2024 campaign messages was a promise to implement a no-tax-on-tips and no-tax-on-overtime law. On July 3, 2025, the U.S. Congress passed the “One Big Beautiful Bill,” and President Trump signed the bill into law on July 4. The White House offers a calculator for employees to determine their savings on tips and overtime and estimates how much eligible and affected employees in each state will save on average. The no-tax-on-tips and no-tax-on-overtime provisions are effective through December 31, 2028.