Midrange earners stand to see meaningful savings, too. A warehouse supervisor earning $60,000 with $10,000 in overtime could shave a couple thousand dollars off their federal tax bill. A hotel bartender making $45,000 plus $5,000 in tips could get back all the federal taxes withheld from their tips.

Tax on tips: What this means for you If you work a job where you receive cash tips, the Senate’s bill, if approved by the House and the President, could eventually mean more money in your pocket.

The Senate narrowly approved Trump's tax bill, which includes a provision that would make his “no tax on tips” campaign promise a reality.

The Senate narrowly approved Trump's tax bill, which includes a provision that would make his “no tax on tips” campaign promise a reality.

Here’s what you need to know. How will no tax on tips affect businesses? Companies that employ workers who receive tips are currently eligible for a tax credit (the 45B tax credit).

How It Could Affect Customers At a quick glance, the No Tax on Tips Act may seem to affect only workers and employers, but customers could experience changes in tipping culture.