Under the One Big Beautiful Bill Act, which three types of income became tax-free?

The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced several significant changes to the U.S. tax code, aiming to provide financial relief to various groups of taxpayers. This sweeping legislation, also known as Public Law 119-21, made many of the 2017 Tax Cut and Jobs Act provisions permanent and added new measures, including notable adjustments to how certain types of income are taxed.

Among the key changes, the act introduced substantial deductions for both qualified tip income and overtime pay, effectively making a significant portion of these earnings free from federal income tax up to certain thresholds. For tips, individuals can deduct up to $25,000 annually, a measure designed to benefit workers in industries where tipping is customary. Similarly, the "No Tax on Overtime" provision allows for a deduction of up to $12,500 ($25,000 for joint filers) for qualified overtime compensation, providing a tangible benefit to