Workers In 68 Jobs May Soon Be Exempt from Paying Taxes On Tips — Including Some Unexpected Ones

A newly signed law could soon give millions of workers a break from paying federal income tax on tips — and not just the ones you’d expect.

As part of a Republican-supported fiscal bill signed into law by President Trump on July 4, a temporary tax exemption allows workers in eligible occupations to avoid paying federal income tax on their tipped earnings. Dubbed the “Big, Beautiful Bill,” the legislation gave the Trump administration 90 days to release a list of qualifying occupations. That preliminary list is now out — and it includes 68 jobs, spanning from traditional service roles like waiters to more surprising ones like plumbers, electricians, and A/C repair workers.

First reported by Axios, the list must still be officially published in the Federal Register, but the Treasury Department says the final version is expected to be “substantially the same.”

According to the White House, this new rule could save eligible workers around $1,300 per year. However, the value of the tax break may be limited depending on income, tip levels, and the nature of the job — particularly for those in roles not commonly associated with receiving tips.

“The hospitality industry will be the big winner under this new policy,” noted law firm Fisher Phillips in a September 2 blog post reviewing the proposed list.

The White House and Treasury Department have not yet commented publicly on the release.

Who Qualifies for the ‘No Tax on Tips’ Provision?

To be eligible for the tip tax exemption, a worker must meet several requirements:

• Job must be listed on the Treasury’s approved occupations list
• Annual income must be below $150,000 (or $300,000 for joint filers)
• Maximum of $25,000 in tips per year can be claimed tax-free
• The provision expires after the 2028 tax year

The 68 Proposed Occupations That May Qualify

The Treasury Department grouped eligible roles into eight broad categories. Each includes examples of specific jobs:

Beverage And Food Service

• Bartenders (mixologists, sommeliers)
• Waitstaff (servers, dining car attendants)
• Non-restaurant food servers (room service, beer cart staff)
• Bussers, bar backs

Chefs And Cooks

• Food prep workers (salad/sandwich makers)
• Fast food and counter workers (baristas, ice cream scoopers)
• Dishwashers, kitchen helpers
• Hosts/hostesses (maître d’s, greeters)
• Bakers (pastry chefs, cake decorators)

Entertainment And Events

• Casino dealers and cashiers
• Bingo callers, sportsbook runners
• Dancers (club, cabaret)
• Musicians, singers, DJs
• Comedians, magicians, performers
• Livestreamers, social media influencers
• Ushers, ticket takers
• Locker room and coat check staff

Hospitality And Guest Services

• Bellhops, baggage porters
• Concierges
• Front desk clerks
• Housekeeping staff

Home Services

• Handypersons, painters, roofers
• Landscapers, groundskeepers
• Electricians, plumbers
• HVAC technicians
• Appliance repair workers
• House cleaners, window washers
• Locksmiths
• Roadside assistance workers (tow truck drivers)

Personal Services

• Valets, butlers
• Wedding or event planners
• Photographers, videographers
• Event officiants
• Dog walkers, pet groomers
• Tutors
• Nannies, babysitters

Personal Appearance And Wellness

• Estheticians, massage therapists
• Barbers, hairdressers, salon assistants
• Nail technicians
• Eyebrow and waxing specialists
• Makeup artists
• Fitness instructors, personal trainers
• Tattoo artists, piercers
• Tailors, shoe shiners

Recreation And Instruction

• Golf caddies
• Art, dance, and other enrichment teachers
• Tour pilots (e.g., hot-air balloon pilots)
• Museum and city guides
• Cruise directors, expedition leaders
• Sports and recreation instructors (ski, surf)

Transportation And Delivery

• Valet attendants
• Rideshare and taxi drivers
• Hotel and airport shuttle drivers
• Food and goods delivery drivers
• Car detailers
• Bus and tour drivers
• Boat and water taxi operators
• Pedicab and rickshaw drivers
• Movers

While this provision is aimed at giving relief to those who rely on tips for a significant portion of their income, some workers in these listed occupations may not routinely receive tips — meaning the benefit may not apply to everyone equally.

The final list will be confirmed once it’s officially published in the Federal Register, but for now, workers in these roles can start assessing their potential eligibility.

 

Source: CBS News