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S. 2780: No Tax on Large Party Tips Act

A Senate bill (S.) in the 119th U.S. Congress.

Overview

Congress119th U.S. Congress (2025–2026)
TypeSenate bill (S.)
Originating chamberSenate
Introduced2025-09-11
SponsorSen. Gallego, Ruben [D-AZ]
Policy areaTaxation
Cosponsors0
Latest action2025-09-11 — Read twice and referred to the Committee on Finance.
Last updated2026-04-15

Summary

Official summary (Introduced in Senate, 2025-09-11):

No Tax on Large Party Tips Act

This bill expands the federal tax deduction for qualified tip income to include tips that are automatically added to a customer's bill and tips that are suggested tips prompted by a business by treating such tips as voluntarily paid. 

As background, for 2025 through 2028, individuals may claim a tax deduction of up to $25,000 per year for qualified tips received in occupations that customarily and regularly receive tips. However, one of the conditions for claiming the tax credit is that the tips must be voluntary, determined by the customer, and nonnegotiable.

Full text & official record

The official bill text, section-by-section summary, amendments, committee reports, and the complete legislative timeline for S. 2780 are published by Congress on congress.gov.

View S. 2780 on congress.gov →

Frequently asked questions

What is S. 2780?

S. 2780 is a Senate bill (S.) introduced in the 119th U.S. Congress, originating in the Senate. Official title: No Tax on Large Party Tips Act.

Where can I read the full bill text?

The full text, cosponsors, amendments, and legislative status for S. 2780 are available on congress.gov.

Bill data: congress.gov API (official congressional records).