Personal Finance

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

2 September 2025

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.

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.