Key Points
- The Treasury Department has released a list of 68 occupations that will qualify for the new “no tax on tips” deduction.
- The deduction allows up to $25,000 per year and applies to tip wages reported on W‑2, 1099 or Form 4137.
- Phase‑out begins for households earning more than $150,000 (or $300,000 for joint filers).
President Trump’s One Big Beautiful Bill Act (OBBBA) introduced a new provision that gives a tax deduction on tips for a defined set of workers. As part of the new law, the Treasury Department had to create a list of jobs that qualifies – and we have that list!
According to Axios, the Treasury Department described the list as “expansive but fair.” It groups the 68 occupations into eight categories, ranging from traditional restaurant roles to niche service positions.
Starting this tax year (when workers file their taxes between January and April next spring) many workers who routinely receive cash tips will now be able to claim a tax break that could meaningfully increase take‑home pay.
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@thecollegeinvestor The list of “no tax on tips” jobs was released and here are the 68 jobs and job types that will qualify for the new tax deduction. Here’s what you need to know! #taxes #notaxontips #obbba #tax ♬ original sound – The College Investor
How The Tax Deduction Works
Effective for tax years 2025 through 2028, the rule permits employees and self‑employed individuals to deduct “qualified tips,” defined as voluntary cash or charged tips received from customers or shared among staff. The maximum annual deduction is $25,000. For self‑employed earners, the deduction cannot exceed the net income generated by the business that produced the tips.
Eligibility does not depend on whether a taxpayer itemizes deductions: both itemizers and non‑itemizers may claim the benefit. However, certain self‑employed professionals operating within a Specified Service Trade or Business (SSTB) under section 199A are excluded, as are employees whose employers fall into an SSTB.
To claim the deduction, taxpayers must include their Social Security number on the return and, if married, file jointly (you cannot file your taxes “Married Filing Separately” and claim the deuction). Employers are required to submit information returns to the IRS (or the Social Security Administration) and provide workers with statements that detail cash tips received and the corresponding occupation. This will typically be included on Form W2.
The Treasury has set an October 2, 2025 deadline for the IRS to publish the official occupation list in the Federal Register, along with guidance on reporting requirements.
Which Jobs Qualify For “No Tax On Tips”
According to the report by Axios, the following list of jobs are set to be published in the Federal register this week:
Beverage and Food Service
- Bartenders
- Wait Staff
- Food Servers, Non-restaurant
- Dining Room and Cafeteria Attendants and Bartender Helpers
- Chefs and Cooks
- Food Preparation Workers
- Fast Food and Counter Workers
- Dishwashers
- Host Staff, Restaurant, Lounge, and Coffee Shop
- Bakers
Entertainment and Events
- Gambling Dealers
- Gambling Change Persons and Booth Cashiers
- Gambling Cage Workers
- Gambling and Sports Book Writers and Runners
- Dancers
- Musicians and Singers
- Disc Jockeys (except radio)
- Entertainers & performers
- Digital Content Creators
- Ushers, Lobby Attendants, and Ticket Takers
- Locker Room, Coatroom and Dressing Room Attendants
Hospitality and Guest Services
- Baggage Porters and Bellhops
- Concierges
- Hotel, Motel and Resort Desk Clerks
- Maids and Housekeeping Cleaners
Home Services
- Home Maintenance and Repair Workers
- Home Landscaping and Groundskeeping Workers
- Home Electricians
- Home Plumbers
- Home Heating/Air Conditioning Mechanics and Installers
- Home Appliance Installers and Repairers
- Home Cleaning Service Workers
- Locksmiths
- Roadside Assistance Workers
Personal Services
- Personal Care and Service Workers
- Private Event Planners
- Private Event and Portrait Photographers
- Private Event Videographers
- Event Officiants
- Pet Caretakers
- Tutors
- Nannies and Babysitters
Personal Appearance and Wellness
- Skincare Specialists
- Massage Therapists
- Barbers, Hairdressers, Hairstylists, and Cosmetologists
- Shampooers
- Manicurists and Pedicurists
- Eyebrow Threading and Waxing Technicians
- Makeup Artists
- Exercise Trainers and Group Fitness Instructors
- Tattoo Artists and Piercers
- Tailors
- Shoe and Leather Workers and Repairers
Recreation and Instruction
- Golf Caddies
- Self-Enrichment Teachers
- Recreational and Tour Pilots
- Tour Guides and Escorts
- Travel Guides
- Sports and Recreation Instructors
Transportation and Delivery
- Parking and Valet Attendants
- Taxi and Rideshare Drivers and Chauffeurs
- Shuttle Drivers
- Goods Delivery People
- Personal Vehicle and Equipment Cleaners
- Private and Charter Bus Drivers
- Water Taxi Operators and Charter Boat Workers
- Rickshaw, Pedicab, and Carriage Drivers
- Home Movers
What Does This Means For Tipped Workers
For many households, especially those relying on multiple part‑time or gig‑based jobs, the ability to shield tips from taxation can translate into noticeable benefits. This can help with a monthly budget goal, paying down student loan debt, and more.
The phase‑out thresholds ($150,000 for single filers and $300,000 for joint returns) makes the benefit primarily support middle‑income earners. Families whose combined earnings sit below these limits stand to keep more of the money earned through tips.
Beyond immediate personal gains, the policy may influence employers to better report tips and invest in tools to make tipping easier.
Overall, the “no tax on tips” provision represents a targeted effort to recognize the value of tip‑based compensation across a wide swath of the economy. As the IRS finalizes the occupational list and related rules, workers and families should be ready to claim the deduction on their next tax return.
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