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  1. Taxes

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

By:
Liliana Hall
5 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.

When Congress passed the One Big Beautiful Bill Act in July, it didn't specify which jobs would qualify for the "no tax on tips" deduction. Instead, lawmakers directed the U.S. Treasury Department to determine which occupations count as "tipped."

To meet the requirement, the Treasury Department released a preliminary list in September identifying 68 occupations that could be eligible for the deduction. At the time, Treasury Secretary Scott Bessent told Axios he believed the list of eligible occupations was "expansive but fair."

The IRS and Treasury Department later published the list in the Federal Register, inviting public comment through Oct. 23. The final version remains consistent with the preliminary list, and no revisions have been announced since the public comment period closed. This article reflects the most current information available.

For those who qualify, the measure eliminates federal income taxes on cash tips for millions of workers in tip-heavy industries. In 2023, about 4 million workers — roughly 2.5% of the U.S. workforce — worked in tipped occupations, according to the Yale Budget Lab.

The tax break applies only to the 2025–2028 tax years. During that period, eligible workers earning up to $150,000 a year — or $300,000 for joint filers — can exclude up to $25,000 in tips from federal taxes, with income thresholds indexed to inflation. However, some analysts have expressed doubt over just how helpful the policy will be, given that 37% of tipped workers don't earn enough to owe any federal taxes in the first place.

Need to file your taxes? See how you can maximize your refund this year with TurboTax.

Who qualifies for the "no tax on tips" deduction?

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

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