A restaurant server delivering food to diners. This worker is one who might be able to claim the new tip income tax break. (Photo by Getty Images for Unsplash+)
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Over the holiday weekend, Axios was the first to reveal the jobs that the Treasury Department has decided qualify for the new One Big Beautiful Bill (OBBB) Act tax deduction on tip income.
As a pre-internet, old-school, ink-stained fingers journalist, I totally got, and was a bit jealous, of the publication’s headline announcing the tax scoop.
But rather than simply refer readers of the ol’ blog to that story, I decided I’d wait for the official U.S. Treasury issuance of its no tax on tips guidance, just in case there was something that didn’t make it into the Axios piece.
Well, Treasury finally did make a tip income announcement. And it opted for the easy route. It sent an email that had the same header as its press release, namely ICYMI: Bessent Touts “No Tax on Tips.”
The release then proceeded to link to the Axios story and other interviews and appearances where Treasury Secretary Scott Bessent discussed the new tax law that will let some workers avoid paying tax on up to $25,000 in tip income each year, starting in 2025 and running through 2028.
So, with that official imprimatur, here are the 68 jobs, divided by Treasury into eight categories, that will be able to take advantage of the OBBB’s no tax on tips deduction.
Beverage and Food Service employees
• 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 staff
• 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 and performers
• Digital Content Creators
• Ushers, Lobby Attendants, and Ticket Takers
• Locker Room, Coatroom, and Dressing Room Attendants
Hospitality and Guest Services personnel
• Baggage Porters and Bellhops
• Concierges
• Hotel, Motel, and Resort Desk Clerks
• Maids and Housekeeping Cleaners
Home Services providers
• Home Maintenance and Repair Workers
• Home Landscaping and Grounds keeping 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 workers
• 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 staff
• 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 workers
• Golf Caddies
• Self-Enrichment Teachers
• Recreational and Tour Pilots
• Tour Guides and Escorts
• Travel Guides
• Sports and Recreation Instructors
Transportation and Delivery workers
• 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
Informal on-site announcements: To meet official requirements, the list of workers who qualify for the no-tax-on-tips claim will be published in the Federal Register as part of proposed regulations by the Treasury and the IRS.
Informally, it was revealed as Bessent spent part of his Labor Day break visiting three Washington-area restaurants to promote the new tax break.
The Treasury Secretary characterized the list of tax-free tips occupations as “expansive but fair. … For workers, $20 here and $20 there can make a big difference.”
New no-tax-on-tips law: The Treasury’s occupation list is part of OBBB’s mandate that by Oct. 2, 2025, the Internal Revenue Service publish a list of occupations that “customarily and regularly” received tips on or before Dec. 31, 2024.
As noted earlier, eligible employees will be able to deduct a maximum of $25,000 of their qualified tips each year, from 2025 through 2028, from their gross income to get to a lower, taxable income amount.
Eligible self-employed individuals who get qualified tips cannot deduct more than their net income (without regard to this deduction) from the trade or business in which the tips were earned.
Speaking of income, the deduction phases out for taxpayers with modified adjusted gross income exceeding $150,000 or $300,000 for married joint filers.
And just what are qualified tips? The law says they are voluntary cash or charged tips received from customers or through tip sharing.
Finally, the tips deduction will be an above-the-line option, meaning it will be available to taxpayers regardless of whether they claim the standard deduction or itemize.
Reporting and more: The next step, will be for the IRS to provide transition relief for tax year 2025, since the new law is effective retroactively for the current tax year.
The IRS has alerted employers and other payors that they must file information returns with the agency or the Social Security Administration, and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient.
How they will do that is not yet clear, as the IRS has said it is not changing the 2025 Form W-2, Wage and Tax Statement, issued to employees to account for the new tip and other OBBB laws.
However, the IRS has released a draft 2026 tax year W-2 that has a new box for reporting tip income.
The bottom line is for tipped workers to continue to track their tip income, and await further IRS and Treasury guidance.
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