Florida tipped workers get new tax break under President Trump's "big, beautiful bill"
The newly signed bill, which Trump has dubbed his "big beautiful bill," allows tipped workers to deduct up to $25,000 a year in reported tips and lets all hourly employees deduct up to $12,500 in overtime earnings. The measures are aimed at easing the tax burden for service workers, particularly those in the restaurant and hospitality industry.
How much tipped workers and overtime earners can deduct under new Trump-backed law
"That's like 90% of my income right there," said bartender Hugo Llanos, referring to the tips he earns behind the bar.
"A little bit more money on working people's pockets and it gives us an opportunity to enjoy our cities a little bit more," he added.
According to a 2023 study by SquareUp.com, tips make up about 21% of a Florida restaurant worker's income. The same is true in other states, including Ohio, where visitor Hannah Soltay works as a server. She said the new tax break ensures that consumer generosity actually benefits the intended person.
"It means more knowing that the money you meant for a person is actually going to the person," Soltay said.
Llanos said the ability to deduct up to $25,000 in tips will be a welcome change.
"Just based off my taxes last year I probably doubled that or tripled that," he said.
A White House report released in May estimated that the average tipped worker could save just under $1,700 a year under the new provisions. However, the relief is temporary — both the tip and overtime deductions are set to expire in 2028 unless extended by future legislation.
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