Back to Options to Change the Taxation of Tips (September 2024)
Model Estimate T24-0069 — Options to Change the Taxation of Tips, Summary of Revenue and Distributional Effects, 2025 t24-0069.xlsx
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Table shows the change in revenue and in the distribution of federal taxes, by expanded cash income percentile in 2025, of several options to exclude reported tips from federal taxes. For a discussion of the distribution metrics presented in this table, see Measuring the Distribution of Tax Changes. 
Model Estimates Type Revenue Tables
Primary topic Campaigns, Proposals, and Reforms
Topics Presidential campaign proposals Retirement Social Security
Model Estimates from the same Simulation Run September 17, 2024
Model Estimate
T24-0063 — Allow Individual Income Tax Deduction for Eligible Tips Reported by Employees with Adjusted Gross Income Less than $75,000, by ECI Level, 2025
Model Estimate
T24-0064 — Allow Individual Income Tax Deduction for Eligible Tips Reported by Employees with Adjusted Gross Income Less than $75,000, by ECI Percentile, 2025
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
T24-0067 — 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
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
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