Adjusts minimum wage for tipped employees and expands qualified tip deduction.
The Tipped Income Protection and Improvement Act of 2026 amends the Fair Labor Standards Act of 1938 to set the minimum wage for tipped employees to the same level as non-tipped employees. It also amends the Internal Revenue Code of 1986 to expand and make permanent the qualified tip deduction, increasing the limit for joint returns and including automatic gratuities as qualified tips for certain professions. The changes apply to taxable years beginning after December 31, 2025.
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