Wisconsinites are still trying to figure out how the passage of the ‘Big Beautiful Bill’ will affect them after it narrowly made it through Congress and was signed into law by President Donald Trump on July 4th.

While there have been mixed reviews from Wisconsin politicians and residents, one provision should be a major win for Wisconsin’s already vibrant service industry.

Delivering on a promise from President Trump’s 2024 campaign, the Big Beautiful Bill included a ‘no tax on tips’ provision that will allow service workers to deduct up to $25,000 in tips annually from their taxable income.

Advocates for tax reform have already lauded the provision, saying the $25,000 cap ensures it will be used primarily by service workers. (RELATED: Trump Administration Opens Door for Rent Payment History to Boost Homeownership)

“If you look at the data on tipped income, that would cover the majority of individuals earning tips in the United States,” said Garrett Watson of the Tax Foundation.

While the provision was hailed by service industry workers across the country, it will have a particularly positive effect in Wisconsin, which has the third most bars per capita in the United States and boasts over 200,000 employees in the bar and restaurant industry. 

Restaurant and bar workers represent almost 7% of Wisconsin’s total employees, who will now be able to write off an additional $25,000 a year in taxable income. (RELATED: Anti-Expat Protests in Mexico City Draw Outrage and Claims of Hypocrisy)

In addition to the Big Beautiful Bill’s provision exempting tips from being taxed, it also includes a provision allowing workers to write off up to $12,500 in overtime pay. The exemption could be a major victory for workers in the manufacturing industry, which currently employs over 480,000 Wisconsin residents.