Treasury Lists Jobs Eligible for New Tip Tax Exemption

The Treasury Department has released a preliminary list of 68 occupations eligible for the new federal tip tax exemption, a provision included in President Donald Trump’s domestic agenda package known as the “big, beautiful bill.”

The exemption allows qualifying workers to deduct up to $25,000 in tipped income annually from 2025 through 2028. Eligible tips include voluntary cash or charged tips received from customers. The benefit phases out for single filers earning above $150,000 and married couples making more than $300,000.

Treasury Secretary Scott Bessent described the list as “expansive but fair.” Among the occupations are traditional tipped jobs such as bartenders, servers, manicurists, taxi and rideshare drivers, hotel clerks, and tour guides. But the inclusion of social media influencers, podcasters, and digital content creators has raised eyebrows.

The law, signed in July, required Treasury to define eligible occupations to prevent workers from misclassifying income as tips to avoid taxes. The list will be published in the Federal Register for public comment.

While the measure fulfills Trump’s campaign promise to eliminate federal taxes on tips, analysts say relatively few households will benefit. The Urban-Brookings Tax Policy Center estimates only 3% of households will qualify in 2026, with an average tax break of about $1,400. Many lower-income tipped workers already pay little or no federal income tax, meaning middle-income workers are more likely to see savings.

The occupations span a wide range of industries, including food service, hospitality, home services, entertainment, personal care, and transportation. Examples include:

• Restaurant staff such as bartenders, wait staff, dishwashers, and hosts
• Personal appearance workers like barbers, manicurists, and massage therapists
• Home service providers including landscapers, plumbers, and appliance installers
• Entertainers such as musicians, DJs, and dancers
• Transportation workers including rideshare drivers, delivery people, and valet attendants
• Pet care providers, nannies, photographers, tutors, and tour guides

The final list will be determined after the public comment period.

Credit: CNN Newsource

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