No Tax On Tips 2025. But the taxation of tips has been the subject of a lot of debate for a long time, mostly because policymakers thought. Creating a new tax break just for tipped workers, that's new.

But the taxation of tips has been the subject of a lot of debate for a long time, mostly because policymakers thought. Not taxing tips could lead to a $150 billion to $250 billion loss in federal revenue from the exemption over the next 10 years, according to an estimate from the committee for a responsible.