The Republican-backed fiscal package signed into law by President Trump on July 4 includes a temporary tax break that stands to benefit millions of Americans: a provision that allows eligible workers to avoid paying federal income tax on tips.
The “big, beautiful bill,” as the legislation was dubbed, tasked the Trump administration with publishing a list of occupations that qualify for the tax break within 90 days of the bill’s passage. Now, the Treasury Department has issued that list, which includes 68 occupations ranging from traditional tipped jobs like waiters to some that don’t typically invite gratuities, such as plumbers, electricians and air conditioning repairers.
The list, which was first reported by Axios, isn’t final, as it must still be published in the Federal Register. But the Treasury Department notes that the IRS expects the final list to “be substantially the same as this preliminary list.”
The new tax rule could save qualifying tipped workers about $1,300 each, according to the White House. Some restrictions built into the law could limit the tax break’s value, while some people in jobs on Treasury’s list — but that don’t typically receive tips — might not derive much benefit from the change.
“Those in the hospitality industry will be the big winners under this new policy,” noted law firm Fisher Phillips in a Sept. 2 blog post about the proposed list of covered occupations.
The Treasury Department and White House didn’t immediately respond to a request for comment.
What are the “no tax on tips” restrictions?
First, a worker will only qualify for the tax break if their occupation is on Treasury’s list of jobs that qualify for “no tax on tips.”
The provision also contains other restrictions, including:
- Tipped workers must earn less than $150,000 a year to qualify, or $300,000 for married couples who file their taxes jointly
- Workers may claim a maximum of $25,000 per year in tipped income
- The provision is only valid through 2028, and is currently scheduled to expire after that tax year
Here are the proposed jobs that qualify for the provision
The Treasury Department has identified eight types of occupations in which workers could avoid taxes on their tips. The examples in the parentheses below are jobs listed by Treasury for each subcategory.
Beverage & Food Service
- Bartenders (mixologists, sommeliers)
- Wait staff (cocktail servers, dining car attendants)
- Food servers, non-restaurant (room service staff, beer cart attendants)
- Dining room and cafeteria attendants and bartender helpers (bussers, bar backs)
- Chefs and cooks (executive chefs, sous chefs)
- Food preparation workers (salad makers, sandwich makers)
- Fast-food and counter workers (baristas, ice cream servers)
- Dishwashers and kitchen helpers (dishwashers, stewards)
- Hosts and hostesses (maître d’s, lounge greeters)
- Bakers (pastry chefs, cake decorators)
Entertainment and events
- Gambling dealers (blackjack dealers, poker dealers)
- Gambling change persons and booth cashiers (slot attendants, cage clerks)
- Gambling and sports book writers/runners (bingo callers, ticket runners)
- Dancers (club dancers, cabaret performers)
- Musicians and singers (lounge singers, instrumentalists)
- Disc jockeys (wedding DJs, nightclub DJs)
- Entertainers and performers (comedians, magicians)
- Digital content creators (livestreamers, social media influencers)
- Ushers and ticket takers (theater ushers, concert hall attendants)
- Locker room and coatroom attendants (coat check staff, dressing room attendants)
Hospitality and guest services
- Baggage porters and bellhops (hotel bell staff, cruise ship porters)
- Concierges (hotel guest service agents, resort concierges)
- Hotel, motel and resort desk clerks (front-desk clerks, guest check-in staff)
- Maids and housekeeping cleaners (hotel housekeepers, resort cleaning staff)
Home services
- Home maintenance and repair workers (handypersons, house painters, roofers)
- Landscaping and groundskeeping workers (gardeners, tree trimmers)
- Electricians (residential wiring specialists, lighting installers)
- Plumbers (pipefitters, fixture installers)
- Heating and air conditioning mechanics (furnace technicians, air conditioner installers)
- Appliance installers and repairers (dishwasher repairers, refrigerator technicians)
- Home cleaning service workers (house cleaners, window washers)
- Locksmiths (key makers, safe installers)
- Roadside assistance workers (tow truck drivers, tire repairers)
Personal services
- Personal care and service workers (valets, butlers)
- Private event planners (wedding planners, party planners)
- Photographers (wedding photographers, portrait photographers)
- Videographers (event videographers, wedding videographers)
- Event officiants (wedding officiants, clergy)
- Pet caretakers (dog walkers, pet groomers)
- Tutors (language tutors, math tutors)
- Nannies and babysitters (au pairs, childcare workers)
Personal appearance and wellness
- Skincare specialists (estheticians, facialists)
- Massage therapists (sports masseurs, deep tissue therapists)
- Barbers and hairdressers (hairstylists, cosmetologists)
- Shampooers and salon assistants (shampooers, junior stylists)
- Manicurists and pedicurists (nail technicians, spa pedicurists)
- Eyebrow threading and waxing technicians (brow specialists, waxing professionals)
- Makeup artists (bridal makeup artists, theatrical makeup specialists)
- Exercise trainers and fitness instructors (yoga instructors, personal trainers)
- Tattoo artists and piercers (tattoo designers, body piercers)
- Tailors (seamstresses, alteration specialists)
- Shoe and leather workers (cobblers, shoe shiners)
Recreation and instruction
- Golf caddies (caddies, golf assistants)
- Self-enrichment teachers (art instructors, dance teachers)
- Recreational and tour pilots (hot-air balloon pilots, sightseeing pilots)
- Tour guides and escorts (museum guides, city guides)
- Travel guides (cruise directors, expedition leaders)
- Sports and recreation instructors (ski instructors, surfing teachers)
Transportation and delivery
- Parking and valet attendants (garage valets, hotel parking attendants)
- Taxi and rideshare drivers (cab drivers, rideshare drivers)
- Shuttle drivers (airport shuttle drivers, hotel shuttle drivers)
- Goods delivery workers (pizza delivery drivers, grocery delivery workers)
- Vehicle and equipment cleaners (car detailers, boat cleaners)
- Bus drivers (tour bus drivers, charter bus drivers)
- Water taxi operators and charter boat workers (ferry captains, fishing charter crew)
- Rickshaw and pedicab drivers (carriage drivers, pedicab operators)
- Home movers (furniture movers, packers)
