A new bill could mean no federal income taxes on your tips

You go the extra mile every day. Whether it’s delivering someone’s lunch on time or helping a rider get home safely, your effort doesn’t go unnoticed. That’s why customers leave tips—it’s their way of saying thank you.

Now, a new bill in Washington, D.C. could mean that you get to keep more of those tips. If passed, No Tax on Tips would make tips exempt from federal income taxes—and that would include tips you earn on Uber.

No Tax on Tips, first proposed by President Trump during his 2024 presidential campaign, is a proposal to change how tips are taxed. If it becomes law, you wouldn’t pay federal income taxes on your tips that are reported to the IRS on a 1099 form. 

When the idea was first introduced in Congress, it only applied to traditional employees who get W-2s, like restaurant servers. That would have left out independent earners like you.

Uber drivers & couriers have long earned tips for providing great service. So it’s only fair that you be treated the same—no matter how you work.

That’s why Uber has been taking steps to make sure independent workers are included in the bill. We’ve met with lawmakers, shared your stories, and partnered with others in the industry to make the case. And it’s paying off: the latest version of the bill, which was passed by the U.S. House of Representatives on May 22, includes independent earners, including Uber drivers and couriers.

But it’s not over the finish line yet—the bill still needs to be passed by the Senate before it can be signed into law by President Trump.

If the bill passes, here’s what changes:

For many drivers and couriers, tips help cover everyday essentials like gas, groceries, or bills. We know this bill would make a real difference.

This proposal still needs to make its way through Congress before it becomes law. We’ll keep speaking up for you and sharing updates as it moves forward.

In the meantime, help us advocate for No Tax on Tips by sharing your story.

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