Nearly 30 million Americans have taken advantage of tax deductions on tips and overtime introduced under Donald Trump’s economic agenda, according to Scott Bessent, who shared updated figures ahead of the April 15 tax filing deadline.
Speaking at an event with small business owners in New York’s Hudson Valley, Bessent said the uptake shows growing use of provisions rolled out under the administration’s flagship tax law.
As reported by New York Post, Bessent said 5.7 million taxpayers have filed for the “No Tax on Tips” deduction, while 23 million have claimed the “No Tax on Overtime” benefit.
“That’s the biggest one,” Bessent said of the overtime provision.
The combined total, nearing 30 million, marks an increase from about 24.6 million reported earlier, suggesting more Americans are opting for the deductions as the filing season closes.
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What are ‘No Tax on Tips’ and overtime deductions?
The policies were introduced as part of the administration’s “One Big Beautiful Bill Act,” a sweeping tax package that also expanded standard deductions, reduced taxes on vehicle loan interest and offered relief for businesses and seniors.
The deductions allow eligible workers to exclude certain tipped income and overtime earnings from taxable income, effectively increasing take-home pay.
Workers and businesses report early impact
At the Hudson Valley event, business owners and workers pointed to changes.
Raj Aman, who runs a bar in Yorktown, said the policy has helped attract workers. “Three years ago, I couldn’t get any servers or bartenders,” he said, adding that hiring has picked up significantly as more people seek untaxed tip income.
Claire Kerrigan, a bartender, said the deductions allow her to spend more freely. “It’s really, truly a big help,” she said, noting she no longer needs to set aside as much for taxes.
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Local official Brendel Logan-Charles, a Democrat, also praised the policy, calling it a “wake-up call” for her party and thanking lawmakers for pushing the changes.
Economic push
Republican Congressman Mike Lawler said the tax changes are part of a wider pro-growth strategy, pointing to incentives that allow companies to expense research and development costs and hire more workers.
Bessent added that businesses are already benefiting from roughly $100 billion in additional deductions, which he said could support job creation nationwide.
While early figures suggest strong uptake, the full economic impact of the tax breaks will likely become clearer after the current filing season concludes.
