:max_bytes(150000):strip_icc()/GettyImages-1366672869-5b6882a431dc4b048c761a55422d83ae.jpg "These Are The 68 Jobs That Will Qualify For No Tax on Tips")
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KEY TAKEAWAYS
- The IRS has outlined 68 jobs that will be eligible for the new “no tax on tips” deduction.
- The new deduction, established by the ‘One Big Beautiful Bill,’ will allow tipped workers to deduct the tips they earn from their federal taxes next year, reducing their taxable income.
- About 2.6% of all tax-paying households and individuals will be eligible for the tip deduction.
The IRS has listed nearly 70 types of workers eligible to deduct the tips they earn when they file their taxes next year.
The ‘One Big Beautiful Bill’ established a new tax break, allowing taxpayers to deduct the tips they earn from their federal taxes until the end of 2028. This new “no tax on tips” rule essentially means that eligible taxpayers can subtract up to $25,000 in “qualified tips” from their total taxable income, lowering their total federal tax burden. However, tips will still be subject to state and local taxes and payroll taxes that go toward Social Security, Medicare, and FICA.
“Qualified Tips,” as defined by the IRS, are cash tips received by a worker who customarily and regularly received tips before Dec. 31, 2024. The tips must also be given voluntarily and determined by the payor. The IRS clarified that some automatic service charges, like the automatic gratuity added to checks for large parties, are not a qualified tip.
According to a preliminary estimate from the Tax Policy Center, only about 2.6% of all tax-paying households and individuals can take advantage of the new tip deduction. Tipped workers cannot use the deduction if they do not provide a Social Security number when filing, or if they are married but file separately. The deduction also begins to phase out for single taxpayers who make $150,000 a year and for married taxpayers filing jointly who make $300,000 together.
The IRS’s list of qualifying jobs is a proposal and will be open to public comments until Oct. 23, 2025.
Beverage and Food Service Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Bartenders | 82.8% |
| Wait Staff | 74.6% |
| Host Staff at a Restaurant, Lounge, or Coffee Shop | 46.3% |
| Fast Food and Counter Workers | 40.1% |
| Dining Room and Cafeteria Attendants and Bartender Helpers | 38.9% |
| Nonrestaurant Food Servers | 30.4% |
| Food Preparation Workers | 21.4% |
| Chefs and Cooks | 12.8% |
| Bakers | 12.0% |
| Dishwashers | 11.0% |
Entertainment and Event Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Gambling Change Persons and Booth Cashiers | 78.0% |
| Gambling Dealers | 70.9% |
| Gambling Cage Workers | 37.6% |
| Gambling and Sports Book Writers and Runners | 30.0% |
| DJ, Except Radio | 15.7% |
| Locker Room, Coatroom, and Dressing Room Attendants | 12.0% |
| Dancers | 8.8% |
| Digital Content Creators | 7.9% |
| Entertainers and Performers | 7.9% |
| Ushers, Lobby Attendants, and Ticket Takers | 3.1% |
| Musicians and Singers | 2.9% |
Hospitality and Guest Service Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Hotel, Motel, and Resort Desk Clerks | 11.7% |
| Baggage Porters and Bellhops | 7.0% |
| Concierges | 3.7% |
| Maids and Housekeeping Cleaners | 2.7% |
Home Service Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Home Cleaning Service Workers | 2.7% |
| Locksmiths | 2.0% |
| Home Appliance Installers and Repairers | 1.8% |
| Home Landscaping and Groundskeeping Workers | 0.5% |
| Home Maintenance and Repair Workers | 0.5% |
| Home Heating and Air Conditioning Mechanics and Installers | 0.2% |
| Home Plumbers | 0.2% |
| Roadside Assistance Workers | 0.2% |
| Home Electricians | 0.1% |
Personal Service Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Pet Caretakers | 19.1% |
| Private Event Planners | 5.9% |
| Private Event and Portrait Photographers | 2.3% |
| Nannies and Babysitters | 0.7% |
| Personal Care and Service Workers | 0.6% |
| Event Officiants | 0.2% |
| Private Event Videographers | N/A |
Personal Appearance and Wellness Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Massage Therapists | 55.8% |
| Skincare Specialists | 54.7% |
| Eyebrow Threading and Waxing Technicians | 53.2% |
| Barbers, Hairdressers, Hairstylists, and Cosmetologists | 52.4% |
| Manicurists and Pedicurists | 36.2% |
| Makeup Artists | 13.1% |
| Tattoo Artists and Piercers | 11.1% |
| Exercise Trainers and Group Fitness Instructors | 1.0% |
| Tailors | 0.8% |
| Shampooers | N/A |
| Shoe and Leather Workers and Repairers | N/A |
Recreation and Instruction Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Tour Guides | 14.2% |
| Travel Guides | 13.3% |
| Golf Caddies | 8.0% |
| Self-Enrichment Teachers | 1.9% |
| Sports and Recreation Instructors | 1.9% |
| Recreational and Tour Pilots | N/A |
Transportation and Delivery Jobs
| Job Title | Percentage of Workers in the Occupation Who Have Reported at Least $100 in Tips |
|---|---|
| Taxi and Rideshare Drivers and Chauffeurs | 24.9% |
| Parking and Valet Attendants | 17.4% |
| Shuttle Drivers | 16.7% |
| Personal Vehicle and Equipment Cleaners | 4.8% |
| Goods Delivery People | 3.7% |
| Home Movers | 2.5% |
| Rickshaw, Pedicab, and Carriage Drivers | 0.8% |
| Private and Charter Bus Drivers | 0.7% |
| Water Taxi Operators and Charter Boat Workers | N/A |
