Washington D.C. – New data released by the Treasury Department indicates that nearly 30 million Americans have utilized tax deductions on tips and overtime pay, policies enacted under President Donald Trump’s administration. Treasury Secretary Scott Bessent announced the updated figures during an event with small business owners in New York, highlighting the widespread adoption of these provisions days before the April 15 tax filing deadline.
"Everybody wants their tips not being taxed." — Raj Aman, Bar Owner
The policies, commonly referred to as “No Tax on Tips” and “No Tax on Overtime,” were integral components of President Trump’s major tax package and broader economic legislation. The administration’s stated goal for these changes is to boost take-home pay for workers, encourage greater workforce participation, and ultimately increase disposable income across various sectors of the economy.
According to the Treasury Department’s updated statistics, 5.7 million Americans have claimed the deduction specifically on tips. The "No Tax on Overtime" provision has seen even broader adoption, with 23 million taxpayers claiming this deduction. Combined, these figures bring the total participation to nearly 30 million taxpayers, marking an increase from previous estimates which had placed usage around 24.6 million. Secretary Bessent specifically noted the overtime provision, describing it as "the biggest one" due to its extensive impact across diverse industries.
These deductions are part of a larger tax reform effort initiated by President Trump, which also includes other measures such as reductions on vehicle loan interest and expanded deductions for businesses and seniors. Administration officials consistently argue that these comprehensive changes are strategically designed to stimulate economic activity by putting more money directly into the hands of workers and businesses.
The impact of these policies is already being observed by some business owners and workers. Raj Aman, who owns and operates a bar in New York, shared his experience, noting a significant improvement in his ability to hire staff. "Three years ago, I couldn’t get any servers or bartenders," Aman stated, as reported by the New York Post. "This year, we’ve already interviewed over 85 people." He attributed this increased interest in employment directly to the tip deduction, adding, "Everybody wants their tips not being taxed," and observing that his employees are now earning more.
Workers have also reported direct financial benefits. Claire Kerrigan, a bartender, commented on the tangible relief provided by the extra income. "It’s really, truly a big help," she said, explaining that she no longer needs to set aside as much money specifically for tax purposes, thereby reducing her financial pressure.
The policies have even garnered support from some local officials across the political spectrum. Brendel Logan-Charles, a Democrat, publicly voiced her approval during the event, stating, "Thank you… this is a great day for us." She suggested that the success of the policy should prompt her party to re-evaluate its current economic strategies.
Supporters of the administration's tax cuts contend that the benefits will extend beyond individual taxpayers and businesses, generating a broader positive economic impact. They anticipate that the increase in disposable income will translate into greater consumer spending, which in turn will foster business growth and job creation. Some officials believe that the full effects of these deductions will become more apparent over time as more workers and businesses integrate them into their financial planning.
Secretary Bessent also touched upon other elements of the administration’s economic agenda, including the introduction of new investment accounts for children, designed to be funded at birth and grow over time, aiming to support long-term financial stability for future generations. For the immediate future, however, administration officials are concentrating on the current impact of the tax deductions. With millions of Americans already benefiting, the "No Tax on Tips" and "No Tax on Overtime" policies are being positioned as a central pillar of President Trump's ongoing economic message.
