US Edition
Which Jobs Are On The List To Benefit From The ‘No Tax On Tips’ Deduction?
Eligible workers in 68 occupations can deduct up to $25,000 in tip income annually from 2025 to 2028, benefiting about 3% of households with an average $1,400 tax break.
- On July 4, 2025, President Donald Trump enacted legislation that includes a temporary provision allowing certain U.S. workers to deduct tip income from their taxable earnings.
- The deduction is available from 2025 through 2028 for workers in approximately 68 occupations known for consistently earning voluntary tips, such as servers, rideshare drivers, and barbers.
- Eligible taxpayers may deduct up to $25,000 of reported tip income annually, with a phase-out starting at $150,000 of modified adjusted gross income for single filers.
- The nonpartisan Urban-Brookings Tax Policy Center projects that a small share of households—approximately 3%—will see a tax reduction averaging $1,400, while many workers who rely on tips earn too little to be liable for federal income tax.
- Experts note the deduction favors businesses relying on tipping and creates inequities for workers in non-tipped jobs, with limited direct benefit for most low-income tipped workers.
36 Articles
36 Articles
Workers in 68 occupations may soon be exempt from paying taxes on tips, including some surprising jobs
Waiters and bartenders are included in a proposed list of jobs that could qualify for a federal tax break on tips, as well as some workers who don't traditionally get gratuities.
Here's the list of jobs eligible for Trump's 'no tax on tips'
Nearly 70 jobs qualify for “no tax on tips,” as part of a U.S. Department of the Treasury preliminary list released Tuesday.The occupations include restaurant servers, rideshare drivers, barbers and digital content creators, such as social media influencers and podcasters.Employees and self-employed people may deduct qualified tips received in eligible jobs that “customarily and regularly received tips,” effective for 2025 through 2028, accordin…
McDonald’s CEO says Trump’s no tax on tips creates ‘uneven playing field’ for its restaurants, which don’t get ‘customers to pay’ for labor
Chris Kempczinski raised concerns that restaurants paying tipped workers a lower minimum wage were getting a boost from the White House’s tax deductions.
Coverage Details
Bias Distribution
- 53% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
