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  1. Taxes

From Baristas to Influencers, These 68 Jobs Could Qualify for ‘No Tax on Tips’

By:
Liliana Hall
4 min read
- Money; Getty Images
Money; Getty Images

What do restaurant servers, rideshare drivers, influencers and dog walkers all have in common? For the next four years, they likely won’t owe federal taxes on their tip income.

The Treasury Department on Tuesday released a preliminary list of 68 occupations eligible for the “no tax on tips” deduction created under President Donald Trump’s new tax cuts and spending package, the so-called “big, beautiful” bill he signed into law on July 4.

The measure eliminates federal income taxes on cash tips for millions of workers in roles where tips are common. In 2023, about 4 million workers — roughly 2.5% of the U.S. workforce — were in tipped occupations, according to the Yale Budget Lab.

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The tax break is temporary, covering only the 2025-2028 tax years. During that window, eligible workers making less than $160,000 in 2025 can claim up to $25,000 in tax-free tips, with the income cutoff indexed to inflation. (Analysts have expressed doubt over just how helpful the policy will be, given that 37% of tipped workers don't make enough money to even pay taxes.)

Up to this point, the Trump administration hadn't detailed which occupations would qualify. Treasury Secretary Scott Bessent told Axios that he believes the list of eligible occupations is "expansive but fair."

Although Tuesday's list is not final, the administration was required to release it within 90 days of the bill's signing, setting a deadline of Oct. 2. The Treasury must eventually publish an official proposed list in the Federal Register, at which point the public will be allowed to provide comments.

"No tax on tips" eligibility

Here's who qualifies for Trump's "no tax on tips" policy, broken down into eight industries:

1. Beverage and food service

2. Entertainment and events

3. Hospitality and guest services

4. Home services

5. Personal services

6. Personal appearance and wellness

7. Recreation and instruction

8. Transportation and delivery

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