President Donald Trump arrives to speak on his plan to end tax on tips in Las Vegas, Jan. 25, 2025.
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Who qualifies for ‘no tax on tips’
The Treasury’s preliminary list outlined 68 occupations that “customarily and regularly received tips” on or before Dec. 31, 2024, which would qualify for the new deduction.
Here are the tipped workers who may qualify for Trump’s “no tax on tips” deduction:
Beverage and 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
Entertainment and 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 and performers
- Digital content creators
- Ushers, lobby attendants and ticket takers
- Locker room, coatroom, and dressing room attendants
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Hospitality and guest services
- Baggage porters and bellhops
- Concierges
- Hotel, motel and resort desk clerks
- Maids and housekeeping cleaners
Home services
- Home maintenance and repair workers
- Home landscaping and groundskeeping workers
- Home electricians
- Home plumbers
- Home heating and air conditioning mechanics and installers
- Home appliance installers and repairers
- Home cleaning service workers
- Locksmiths
- Roadside assistance workers
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
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Personal appearance and 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
Recreation and instruction
- Golf caddies
- Self-enrichment teachers
- Recreational and tour pilots
- Tour guides and escorts
- Travel guides
- Sports and recreation instructors
Transportation and delivery
- Parking and valet attendants
- Taxi, 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
How ‘no tax on tips’ works
The “no tax on tips” provision allows eligible workers to deduct up to $25,000, which reduces taxable income.
The deduction phases out, or gets smaller, once modified adjusted gross income exceeds $150,000. The tax break is available even if you don’t itemize deductions.
However, “you’re still likely paying state taxes” on tip income, and you’ll owe payroll levies for Medicare and Social Security, Ben Henry-Moreland, a certified financial planner with advisor platform Kitces.com, previously told CNBC.
The provision, which defines “qualifying tips” as money willingly given by the customer or payor, includes gratuities paid in cash or by credit card, as well as earnings from a tip-sharing arrangement.
