No Tax on Tips is now law

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 you get to keep more of those tips. As part of the new federal bill that has been signed into law, No Tax on Tips  means tips are exempt from federal income taxes—and that  includes 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. Now that this has become law, you won’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. Now it includes workers like you too.

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 led the fight with your members of Congress to make sure independent workers were 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 paid off: the latest version of the bill, just signed into law, includes independent earners, including Uber drivers and couriers.