Back to Options to Change the Taxation of Tips (September 2024)
Model Estimate T24-0067 — Allow Individual Income Tax Deduction for Eligible Tips Reported by Employees and Exclude those Tips from Wages for Payroll Tax Purposes, by ECI Level, 2025 t24-0067.xls
(231.5 KB)

Table shows the change in the distribution of federal taxes, by expanded cash income level in 2025, of an option to exclude reported tips from individual income and payroll taxes. For a discussion of the distribution metrics presented in this table, see Measuring the Distribution of Tax Changes. 
Model Estimates Type Distribution Tables by Income Level
Primary topic Campaigns, Proposals, and Reforms
Topics Presidential campaign proposals Income tax (individual) Payroll taxes Tax expenditures (individual)
Model Estimates from the same Simulation Run September 17, 2024
Model Estimate
T24-0065 — Allow Individual Income Tax Deduction for Eligible Tips Reported by Employees, by ECI Level, 2025
Model Estimate
T24-0066 — Allow Individual Income Tax Deduction for Eligible Tips Reported by Employees, by ECI Percentile, 2025
Model Estimate
T24-0068 — Allow Individual Income Tax Deduction for Eligible Tips Reported by Employees and Exclude those Tips from Wages for Payroll Tax Purposes, by ECI Percentile, 2025
Model Estimate Resources
  • Tax Model Resources
  • Guide to Tables
  • Videos
    •