In this episode of Unfiltered Profit, we’re unpacking the much-talked-about “No Tax on Tips” law from the OB3 bill. Is it as good as it sounds? Kind of. But let’s get clear on what it actually means—especially if you’re running a business where tips are part of the paycheck.

Here’s what we unpack:

• Why “no tax” is a bit of a marketing move (spoiler: you’re still seeing withholdings in your paycheck)
• The difference between “income tax free” and “still paying Social Security & Medicare”
• Who actually qualifies (Hint: you can’t start pretending your consulting clients are tipping you $2K on a $10 invoice)
• What business owners need to actually do (or not do)
• Why your reporting systems could use a glow-up, especially if you’re still lumping in tips with service income
• How this impacts Schedule C filers and what limitations apply if you’re self-employed
• What kind of planning you should be doing now to take advantage of the deduction when filing in 2026

This is the kind of episode that makes tax talk…dare we say it? Fun. Plus, you’ll walk away smarter than your average tax-season-dreading bear.

If you’ve got employees who earn tips, or your clients do, or you are the client who needs help staying compliant (and minimizing your tax bill)—you’re going to want in on this one.

Key takeaway? If you’re not reporting tips correctly, you could be leaving money on the table—or worse, setting yourself up for a tax-season headache.

Want more of our favorite tax tips? Grab our free guide to keep your tax game strong.

Want to make sure your systems are set up to take full advantage of this change?
Book a call today. We’ll help you get it right, the first time.