Dara Khosrowshahi, CEO of Uber, announced in a post on X that the House's approval of President Trump's tax bill, which includes the 'No Tax on Tips' provision, represents a significant victory for Uber drivers and couriers nationwide.
"The House just passed President Trump's tax bill," said Khosrowshahi. "Bringing No Tax On Tips one step closer to the finish line."
According to The Hill, the "One Big Beautiful Bill," passed by the House on May 22, 2025, includes a landmark provision that eliminates federal income taxes on tipped income. This measure targets approximately 4 million American workers who rely heavily on tips, particularly those in restaurants, hospitality, and personal services sectors. Many of these workers earn below-average wages. Supporters argue that removing the tax burden on these earnings will directly increase take-home pay and offer meaningful relief to low- and middle-income workers. Additionally, it is expected to boost consumer spending in local economies where tipped workers reside.
The House GOP tax bill proposes a new above-the-line deduction for tips received in occupations traditionally accepting gratuities. Eligibility extends beyond W-2 employees to include independent contractors and self-employed individuals. According to Section 110101 of the legislation, tips reported on Forms 1099-K, 1099-NEC, or manually reported on Form 4137 would qualify for the deduction if they are voluntary, non-negotiated, and earned in eligible occupations as determined by the Treasury. This provision marks a significant expansion of tax relief for app-based drivers, beauty professionals, and other gig workers who depend on customer tips for income.
Khosrowshahi has been leading Uber's global operations across more than 70 countries since 2017. Before joining Uber, he was the CEO of Expedia where he expanded the company through key acquisitions and mobile innovation. An Iranian-American with a background in engineering and finance, Khosrowshahi is also recognized as one of Glassdoor’s Highest Rated CEOs and serves as a board member advocating for global refugee causes.