Fact-check · Sep 9, 2026 · Donald Trump
“This year, 6,000,000 tip workers saved over $7,000 on average”
MISLEADING
What the record shows
Treasury reports 7.5 million filers claimed average $7,000+ deduction (not tax savings) in 2026 filing season. Actual average tax savings: ~$1,300-$1,370 per tipped worker. The $7,000 is the deduction amount, not the tax cut.
Sources
- New Income Tax Deductions for Tax-Free Tips and Overtime | Cato Institute
- The Budget Law’s Tax Cuts For Overtime And Tips Are Popular, But Few Will Benefit
- Everything you need to know about “no tax on tips”
- Trump's 'No Tax on Tips' Claim Doesn't Add Up - FactCheck.org
- No Tax on Tips: Real, Targeted Relief for the Working Class - Ways and Means
- Working Families Tax Cuts | Internal Revenue Service
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