Donald Trump approved legislation making all tips tax-free.

On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act (OBBB), one of the most extensive tax packages enacted in recent years.

This sweeping legislation not only makes permanent several major tax reductions originally set to expire at the end of 2025 but also introduces a variety of new benefits aimed at supporting American workers, families, and small businesses.

By securing these long-standing tax cuts, the OBBB ensures that individuals and companies across the country will continue to operate under a lower and more predictable tax structure for the foreseeable future.

A centerpiece of the new law is the expansion of taxpayer-focused deductions, including tax-free overtime pay and an enhanced additional deduction for senior citizens.

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