Who Truly Benefits from “No Tax on Tips”: An Update for Tipped Workers

You have likely seen headlines about a new tax break under President Trump’s One Big Beautiful Bill Act that promises no tax on tips. The Treasury Department has now released a preliminary list of 68 occupations that could qualify, giving us the first real glimpse into the specific occupations that may benefit.

What does this policy mean for workers?

Beginning this year, tipped workers may be able to deduct up to $25,000 per year in reported tip income from their federal income taxes. This deduction begins to phase out for individuals earning over $150,000, or $300,000 for joint filers.  It is also important to note that only tips reported through official forms, like W-2s or 1099s, qualify. Payroll taxes, such as Social Security and Medicare, will still apply.

Treasury Secretary Scott Bessent described the list as “expansive but fair,” noting that even small amounts of tip income can make a meaningful difference for workers. The official list will be published in the Federal Register as part of proposed regulations at a later date.

Who's on the list?

The preliminary list groups 68 tipped jobs into eight broad categories:

1. Beverage & food service

• 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

• 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 & Performers
• Digital Content Creators
• Ushers, Lobby Attendants, and Ticket Takers
• Locker Room, Coatroom and Dressing Room Attendants

3. Hospitality & guest services

• Baggage Porters and Bellhops
• Concierges
• Hotel, Motel and Resort Desk Clerks
• Maids and Housekeeping Cleaners

4. Home Services

• Home Maintenance and Repair Workers
• Home Landscaping and Groundskeeping 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

5. Personal services

• Personal Care and Service Workers
• Private Event Planners
• Private Event and Portrait Photographers
• Private Event Videographers
• Event Officiants
• Pet Caretakers
• Tutors
• Nannies and Babysitters

6. Personal appearance & wellness

• 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

7. Recreation & instruction

• Golf Caddies
• Self-Enrichment Teachers
• Recreational and Tour Pilots
• Tour Guides and Escorts
• Travel Guides
• Sports and Recreation Instructors

8. Transportation & delivery

• 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

What happens next? 

The preliminary list gives us an early look at which occupations may benefit from the “no tax on tips” deduction. The Treasury and IRS plan to publish it in the Federal Register as part of proposed regulations, so changes are still possible. In the meantime, tipped employees should keep detailed records of all reported tips and stay tuned for additional guidance.

As with many parts of the One Big Beautiful Bill Act, the details will matter. At Redpath, we’re here to help you understand how these changes could affect your tax situation and guide you through the adjustments once final regulations are in place.