Getting the most out of the 2025 Tax Reforms
The One Big Beautiful Bill, passed in July 2025, includes extensive tax reforms making pro-business tax policy permanent. These changes will be essential to supporting the growth of the restaurant industry and other small businesses for years to come.
The changes provide a new foundation in the tax code that will help operators balance running a restaurant on their tight margins with their need to make purchases and take on appropriate debt to meet their consumer demands. The changes include:
- Full expensing for capital equipment purchases
- Qualified business income deduction
- Business interest expense deduction
- Family and medical leave tax credits
- Estate tax relief
The tax reforms also included individual tax deductions to benefit tipped restaurant workers and any hourly employees that earn time-and-a-half overtime during the year. From 2025-2028, these employees will be eligible for tax deductions on portions of their pay, which should add up to millions of dollars in savings for their hard work.
Take action
To make it easier for restaurant owners to access information about how these tax changes will impact their operations, the National Restaurant Association has created a series of educational resources that explain the changes, help operators talk with their staff about their new tax deductions, and help operators act on the new savings.
Download the resources now:
- Tax reform overview – Includes industry-specific information on how these changes will impact you and your operation.
- No Tax on Tips overview for operators and employees – Includes the latest information on how No Tax on Tips will work. You can easily share this handout with your employees to help them plan to file for the deduction in April 2026.
- To see the U.S. Department of the Treasury proposal for eligible jobs, click here.
- No Tax on Overtime overview for operators and employees – Includes the latest information on how No Tax on Tips will work. You can easily share this handout with your employees to help them plan to file for the credit in April 2026.
- Tax reform operator checklist – A quick checklist to start a conversation with your tax professional about how the tax reforms could improve your operation.
- Major Tax Policy Changes - Learn how the changes will directly affect restaurant operators, restaurant workers, and the communities they serve.
- New Rules for No Tax on Tips & No Tax on Overtime Premium Pay - Learn which occupations will be eligible for No Tax on Tips, how tip reporting may evolve and why withholdings may change in 2026.
- Tax reform social media toolkit – Share information about the tax reforms in your social media using this toolkit, which includes post texts and graphics.