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68 Jobs Qualify for ‘No Tax on Tips’ — Is Yours One of Them?

Back to libraryAnna Helhoski, Rick VanderKnyffJun 20, 2026
68 Jobs Qualify for ‘No Tax on Tips’ — Is Yours One of Them?

68 Jobs Qualify for ‘No Tax on Tips’ — Is Yours One of Them?

Jobs exempt from tip taxes include tour guides, digital content creators, taxi drivers and home plumbers.

Anna Helhoski
Written by
Rick VanderKnyff
Edited by other Updated Tipped wages will be exempt from taxes for 68 jobs, according to the list revealed by the Treasury Department in an exclusive to Axios. The “no tax on tips” policy exempts gratuities from federal income and payroll taxes. President Donald Trump first promised to exempt tipped workers from the tax during the 2024 election. The ‘no tax on tips’ deduction was included in the “one big, beautiful bill” passed by Congress in July. Taxpayers who qualify will be able to claim the deduction with their 2025 tax filing next year. The policy has drawn praise from some industry groups, like the National Restaurant Association, which frames it as beneficial for existing workers and a potential tool to attract more people to tipped positions. But critics argue that the policy benefits a narrow slice of the workforce and undermines broader support for workers to obtain benefits like health care. They also warn that the temporary deduction could be gamed if workers reclassify regular wages as tips.

How the ‘no tax on tips’ deduction works

If you qualify, the types of tips that count include debit or credit card tips, reported and tracked cash tips or tips received through tip-sharing programs. Mandatory service charges like automatic gratuity aren’t eligible. The deduction only applies to federal income taxes so you may still have to pay state and local taxes. Social Security and Medicare taxes are still withheld from all tips.

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There are income limits, too: If your modified adjusted gross income is $150,000 or less, you’re eligible for the full deduction. For joint filers, this limit doubles to $300,000. For every $1,000 your income exceeds those limits, the deduction is lowered by $100. And if you earn above $400,000 as an individual or above $550,000 as a joint filer, you can’t claim the deduction. The deduction is only valid from 2025 to 2028, for now. When you file your taxes, report your tips on Form 1040.

What jobs are included in the ‘no tax on tips’ exemption?

Treasury Secretary Scott Bessent told Axios that the list of jobs is “expansive, but fair.” The tipped tax-exempt jobs are grouped into eight categories covering multiple industries. The list includes multiple performance positions within entertainment jobs, which were disqualified under the ‘big beautiful bill.’ Here’s the full list of positions that qualify for the exemption.

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

2. Entertainment & events

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 The list will soon be published in the Federal Register, according to Axios. (Photo by Brandon Bell/Getty Images News via Getty Images)

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Explore more on About the author Helhoski Anna Helhoski is a senior writer covering economic news and trends in consumer finance at NerdWallet. She is an on-air contributor and producer of Money News segments for NerdWallet's Smart Money podcast. She is also an authority on student loans. She joined NerdWallet in 2014. Her work has been syndicated in news outlets nationwide including The Associated Press, The New York Times, The Washington Post, The Los Angeles Times and USA Today. She previously covered local news in the New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She holds a bachelor's degree in journalism from Purchase College, State University of New York. Published in Are We in a Recession? Consumer Sentiment: Numbers Tick Up on Easing Gas Prices How Is Trump Handling the Economy? Fed Rate Holds Steady in June 2026 How Is the Economy Doing Right Now? By Anna Helhoski Trump Administration, Stymied by Courts, Outlines New Tariffs By Rick VanderKnyff How Could the DHS Shutdown Affect You? By Anna Helhoski U.S. Adds 172,000 Jobs in May, Beating Expectations Again By Anna Helhoski