Since the passage of President Donald Trump’s One Big Beautiful Bill last July, Fox host Sean Hannity has used the tax cuts to talk up the administration’s accomplishments. However, there seems to be some confusion among taxpayers about the reality of the deductions, which Hannity refers to broadly as “no tax on tips, no tax on overtime, no tax on Social Security.” Mirroring the wording Trump used during his campaign and in the bill itself, Hannity has used the phrase repeatedly, and callers on his radio show have started to express their anger about being misled.
Research/Study
Sean Hannity’s flowery claims about Trump’s tax policy confuse listeners
Written by Isabella Corrao & Helena Hind
Published
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Background
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- Under the One Big Beautiful Bill Act, workers who receive tips can deduct only up to $25,000 per year, and this deduction is set to expire in 2028. For employees who customarily receive tips, such as bartenders and waiters, the maximum annual deduction is up to $25,000 each year from 2025 through 2028 tax years. The tax deduction phases out by 10 cents for every dollar single filers earn over the threshold if they make more than $150,000 and $300,000 for joint filers. Tips must be paid in cash or other mediums that can be transferred to cash, such as checks. [CBS News, 2/23/26; IRS; 1/26/26]
- Deductions on overtime pay have similar limitations. The maximum annual deduction is $12,500 for single filers and $25,000 for joint filers, with the deduction phasing out for single filers with a gross income of $150,000 and for joint filers with a gross income of $300,000. [H&R Block, Accessed 2/26/26; IRS, 7/14/25]
- The OBBBA does not eliminate taxes on Social Security entirely, just provides a new deduction for seniors. The new deduction is capped at $6,000 annually “for certain taxpayers age 65 and older,” while married seniors who both qualify can claim up to $12,000. For single filers making more than $75,000 per year and joint filers making more than $150,000 per year, the deduction phases out at a 6% rate. [Reuters, 11/3/25; IRS, 7/14/25]
- The Wall Street Journal and CNN highlighted the discrepancy between expectation and reality. Only about 9% of taxpayers qualify for the “no tax on overtime” benefit. The fine print of Trump’s “no tax on tips” benefit “could limit savings for some waiters, bartenders, and others.” Forbes even called the Social Security-related tax benefit “misdirection with consequences.” [The Wall Street Journal, 7/6/25; CNN, 9/2/25; Forbes, 12/10/25]
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Hannity’s radio listeners have expressed frustration with his vague coverage of tax cuts
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- Sean Hannity's praise of Trump's tax cuts has been vague, and his listeners seem to be noticing. His radio producer, Lynda McLaughlin, expressed to listeners: “We have been getting tons of phone calls about the no tax on tip, no tax on Social Security, no tax on overtime. And I just wanted to say, for all of you that are calling in and cursing out Katie because Sean didn't say it right, please talk to your tax, you know, person, your accountant.” [Media Matters, 2/24/26]
- During that same radio show, Hannity did acknowledge that “there are limits” to the tax cuts, saying that “some people have been complaining” and that they’re “driving me up a wall.” [Premiere Radio Networks, The Sean Hannity Show, 2/24/26]
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Hannity has repeatedly claimed that there is no tax on tips, overtime, or Social Security
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- Sean Hannity: “Congress passed the largest tax cuts in American histories, and families and working men and women are the biggest beneficiaries. No tax on tips and overtime.” [Fox News, Hannity, 7/14/25]
- Hannity mentioned giving “working men and women a financial break” through “no tax on tips” and “no tax on overtime” as a benefit of Trump’s One Big Beautiful Bill. [Premiere Radio Networks, The Sean Hannity Show, 7/14/25]
- Hannity: “Look at the fact that working men and women are the biggest beneficiaries of this tax cut. I mean, the fact that we have no tax on tips and overtime, helping older Americans out with Social Security.” [Premiere Radio Networks, The Sean Hannity Show, 7/15/25]
- Hannity boasted about the One Big Beautiful Bill Act: “No tax on tips, no tax on overtime. The single largest tax cut in American history.” He added, “Every single American who pays taxes, you will all benefit from this bill.” [Fox News, Hannity, 7/18/25]
- Hannity said “no tax on tips or overtime” is “going to help the economy.” [Premiere Radio Networks, The Sean Hannity Show, 8/19/25]
- Hannity praised Trump for “giving the largest tax cuts in history, and that includes for working men and women, that includes no tax on tips, no tax on overtime, no tax on Social Security.” [Premiere Radio Networks, The Sean Hannity Show, 11/12/25]
- Hannity: “Everything now is stabilized across the board. Wow. Have you been filling up your gas tank lately? Gas prices are at a four-year low. That is the lifeblood of the world's economy. Rent nationwide, going down. Interest rates, again, today, going down. Taxes are going down. The largest tax cut in history, no tax on tips, overtime and Social Security. Trillions of dollars committed to American manufacturing. That has never happened in history, and the president is only getting started.” [Fox News, Hannity, 12/10/25]
- Hannity told his listeners: “I know not all of you are feeling it yet, but when no tax on tips and overtime and Social Security kicks in, you're going to feel it.” [Premiere Radio Networks, The Sean Hannity Show, 1/20/26]
- Hannity: “No tax on tips, overtime, Social Security, the One Big Better Bill is now impacting every person that works.” [Premiere Radio Networks, The Sean Hannity Show, 1/20/26]
- Hannity: “For working class Americans, no tax on tips, overtime. For elderly Americans, senior citizens, that means no tax on Social Security.” [Premiere Radio Networks, The Sean Hannity Show, 1/22/26]
- Hannity: “Largest tax cuts in history. No tax on tips, overtime. Working people are helped. No tax on Social Security, that helps the elderly.” [Fox News, Hannity, 1/26/26]
- Hannity stated: “No tax on tips, overtime. That helps working men and women. No tax on Social Security, that helps the elderly.” [Fox News, Hannity, 1/27/26]
- Hannity said he wants “conservatives to be the party of working men and women” because “those are my roots,” so “if you're working in the service industry, no tax on tips is a big freaking deal. That means you save a lot of money.” [Premiere Radio Networks, The Sean Hannity Show, 2/3/26]
- Hannity: “Americans also that work in the service industry, the heart and soul of this country, hardworking men and women — no tax on tips, no tax on overtime.” He added, “Seniors are benefiting from no tax on Social Security.” [Premiere Radio Networks, The Sean Hannity Show, 2/5/26]
- Hannity said Trump’s tax cuts are “benefiting working men and women with no tax on tips and overtime, and helping the seniors out in the country, no tax on Social Security.” He added, “I would say that is the American people winning on all levels.” [Premiere Radio Networks, The Sean Hannity Show, 2/6/26]
- Hannity asserted that “there’s going to be an explosion in the economy,” citing one of the reasons as “people have more take home pay, and people are paying less in taxes, and especially if you're in the service industry, no tax on tips, no tax on overtime.” [Premiere Radio Networks, The Sean Hannity Show, 2/9/26]
- Hannity: “If you're in the service industry, no tax on tips … or overtime if you're in the trades. No tax if you're older. No tax on Social Security.” [Premiere Radio Networks, The Sean Hannity Show, 2/18/26]