No Tax on Bonuses Act of 2025

# No Tax on Bonuses Act of 2025 (HR 2565) — Summary **What the Bill Would Do:** This bill would exempt employee bonuses from federal income tax. If passed, workers who receive bonuses from their employers would not have to pay federal income taxes on that bonus money, though other taxes (like Social Security and Medicare taxes) would still apply. The bill aims to let workers keep more of their bonus payments. **Who It Affects:** The primary beneficiaries would be employees who receive bonuses.

This could include workers across various industries and salary levels, though higher-paid employees who receive larger bonuses would likely benefit more in absolute dollar terms. Employers might also be affected depending on how bonus structures change in response to the tax incentive. **Current Status:** The bill is currently in committee (as of the information provided), meaning it has not yet been voted on by the full House of Representatives. Committee review is an early stage in the legislative process, and many bills never advance beyond this point.