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H.R.7577

TIP Improvement Act of 2026 Tipped Income Protection and Improvement Act of 2026

Introduced·2/13/26

Adjusts the minimum wage for tipped workers and makes the qualified tip deduction permanent and expanded.

The bill amends the Fair Labor Standards Act of 1938 to adjust the minimum wage for tipped employees. It also amends the Internal Revenue Code of 1986 to expand and make permanent the qualified tip deduction. The deduction limit for joint returns is increased, and the deduction is made permanent by striking certain subsections. The amendments apply to taxable years beginning after December 31, 2025.

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  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Ways And Means Committee
Next
Committee decision

Sponsors

D
1
0
Democratic CaucusRepublican Caucus

History

Feb 13

House

Introduced in House

Feb 13

House

Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.