In 2024–2025, Donald Trump pledged to eliminate federal taxes on tips for service workers. He stated that tips would be "100% yours" and that there would be "no taxes on tips". Beginning in 2025, the “No Tax on Tips” provision creates a federal income-tax deduction letting eligible tipped workers exclude up to $25,000 of qualified tips from federal taxable income for 2025–2028. It’s a deduction, not a tax-free miracle: payroll taxes (Social Security and Medicare) still apply,