If you work in hospitality, this new legislation could mean more money in your pocket.
The One Big Beautiful Bill, enacted on July 4, 2025, brings a major win for service industry workers. Thanks to this bill, tips—often the lifeblood of income for bartenders, servers, hairdressers, bellhops, and many others—are now partially deductible. Starting with the 2025 tax year, workers in qualifying jobs can deduct up to $25,000 in tip income from their taxable income. That means you could see big savings when you file your tax return—even if your paycheck withholding doesn’t change.
But there’s more to know. The deduction only applies to certain types of tips (not service charges), and income limits apply. It also affects how you report your income and what forms you use. And that’s just one part of the bill—there are also updates related to overtime deductions and more.
Chamber member Joe from Sunset Accounting has created a clear, easy-to-understand PDF guide that walks you through all the details—who qualifies, how to claim the deduction, and examples to help you make sense of it all.
Whether you’re a hospitality worker, business owner, or just want to stay informed, we encourage you to download and read the full guide.
