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, will help you and your staff understand changes that impact them, and that will 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 credit in April 2026.
  • 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.
Coming soon:
  • Tax reform operator checklist – A quick checklist to start a conversation with your tax professional about how the tax reforms could improve your operation.
  • Tax reform social media toolkit - Share information about the tax reforms in your social media using this toolkit, which includes post texts and graphics.