68 Jobs That Now Qualify for No Federal Tax on Tips

Key Points
 

• The IRS introduced a rule that allows certain workers in 68 job types to avoid paying federal taxes on their tips.
• This tax break comes from the “One Big Beautiful Bill,” and will let eligible workers deduct their tip income—up to $25,000 per year—from their federal taxable income, reducing how much they owe in taxes.
• The rule takes effect next year and remains in place until the end of 2028.
• This helps around 2.6% of all taxpayers who earn most of their income from tips.

 

How It Works

If you work in a job where you regularly get tips, you could be eligible for this deduction. "Qualified Tips" must be:
 

• Cash tips given freely by a customer,
• Earned in a job where tips were received regularly before December 31, 2024.
• Automatic service charges or gratuities added to bills are not counted as tips for this deduction.

There are a few things to note:
 

• You must provide a Social Security number when filing taxes.
• You can’t use this if you are married but filing taxes separately.
• The deduction starts to get smaller ("phases out") if you earn over $150,000 as a single person, or $300,000 as a married couple filing jointly.
• Tips still count for state/local taxes and payroll taxes (like Social Security and Medicare).

 

Who Qualifies?

The IRS released a proposed list of almost 70 jobs where workers can use this tip deduction. The public can suggest changes or comments to the list until October 23, 2025.

Below are the main types of jobs that qualify:
 

• Food and Beverage Service
  • Bartenders
  • Wait staff (servers)
  • Host/hostess at restaurants, lounges, coffee shops
  • Fast food and counter workers
  • Dining room attendants and bartender helpers
  • Nonrestaurant food servers (like at events)
  • Food prep workers
  • Chefs and cooks
  • Bakers
  • Dishwashers
• Entertainment and Event Jobs
  • Gambling change persons and booth cashiers
  • Gambling dealers
  • Gambling cage workers
  • Sports book writers and runners
  • DJs (except radio)
  • Locker room and coatroom attendants
  • Dancers
  • Digital content creators
  • Entertainers and performers
  • Ushers, lobby attendants, ticket takers
  • Musicians and singers
• Hospitality and Guest Services
  • Hotel, motel, and resort desk clerks
  • Baggage porters and bellhops
  • Concierges
  • Maids and housekeeping cleaners
• Home Services
  • Home cleaning service workers
  • Locksmiths
  • Appliance installers and repairers
  • Landscapers and groundskeepers
  • Maintenance and repair workers
  • Heating, air conditioning, plumbing, electrical, and roadside assistance workers
• Personal and Event Services
  • Pet caretakers
  • Private event planners, photographers, and videographers
  • Nannies and babysitters
  • Personal care workers
  • Event officiants
• Appearance and Wellness
  • Massage therapists
  • Skincare specialists
  • Eyebrow, threading, and waxing technicians
  • Barbers, hairdressers, stylists, and cosmetologists
  • Manicurists/pedicurists
  • Makeup artists
  • Tattoo artists and piercers
  • Fitness trainers and group instructors
  • Tailors
  • Shoe and leather repairers
  • Recreation and Instruction
  • Tour guides and travel guides
  • Golf caddies
  • Self-enrichment teachers (like music or art)
  • Sports/recreation instructors
  • Recreational/tour pilots
• Transportation and Delivery
  • Taxi, rideshare drivers, and chauffeurs
  • Parking and valet attendants
  • Shuttle drivers
  • Vehicle/equipment cleaners
  • Delivery people
  • Home movers
  • Rickshaw, pedicab, carriage drivers
  • Private/charter bus drivers
  • Water taxi operators and charter boat workers

 

In Summary

If you work in one of these jobs and earn tips, you may qualify to deduct those tips from your federal taxable income for the next few years, which could lower your tax bill.

Make sure to check if you meet all requirements and talk to a tax professional for advice. The IRS may adjust this list after hearing from the public, so stay updated if your job is not listed yet.

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