Tucked away among the 940 pages of President Donald Trump’s massive One Big Beautiful Bill Act (OBBBA) are an array of new tax write-offs, exemptions that Trump promised to enact while running for a second term. Those include a provision of the No Tax on Tips Act.
This provision of the OBBBA, which narrowly passed the Senate, and Trump signed into law in July, gives taxpayers the ability to deduct income from tips and overtime pay. It expires at the end of 2028, right before Trump leaves office.
For workers, it creates new tax deductions of up to $25,000 on income made from cash tips, and tips workers report to employers withholding payroll taxes. Eligible employees (see list below) that make up to $160,000 in 2025 qualify. (Going forward, that limit will be adjusted each year for inflation.)
For employers, it also expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips, to include payroll taxes paid on tips received in connection with certain beauty services.
Which jobs qualify for the no tax on tips and overtime deduction?
Up until now, the Trump administration hadn’t clarified which jobs were eligible. Over Labor Day, Treasury Secretary Scott Bessent told Axios there are 68 occupations, calling the selection “expansive but fair.”
The official list will be published in the Federal Register, but here’s the preliminary Treasury list, which is likely to be substantially the same after a period of public comments:
Beverage & Food Service
- Bartender
- Wait staff
- Food servers (non-restaurant)
- Dining room and cafeteria attendants and bartender helpers
- Chefs and cooks
- Food preparation workers
- Fast food and counter workers
- Dishwashers
- Host staff, restaurant, lounge, and coffee shop
- Bakers
Entertainment & Events
- Gambling dealers
- Gambling change persons and booth cashiers
- Gambling cage workers
- Gambling and sports book writers and runners
- Dancers
- Musicians and singers
- Disc jockeys (except radio)
- Entertainers and performers
- Digital content creators
- Ushers, lobby attendants and ticket takers
- Locker Room, coatroom and dressing room attendants
Hospitality & Guest Services
- Baggage porters and bellhops
- Concierges
- Hotel, motel and resort desk clerks
- Maids and housekeeping cleaners
Home Services
- Home maintenance and repair workers
- Home landscaping and groundskeeping workers
- Home electricians
- Home plumbers
- Home heating and air conditioning mechanics and installers
- Home appliance installers and repairers
- Home cleaning service workers
- Locksmiths
- Roadside assistance workers
Personal Services
- Personal care and service workers
- Private event planners
- Private event and portrait photographers
- Private event videographers
- Event officiants
- Pet caretakers
- Tutors
- Nannies and babysitters
Personal Appearance & Wellness
- Skincare specialists
- Massage therapists
- Barbers, hairdressers, hairstylists and cosmetologists
- Shampooers
- Manicurists and pedicurists
- Eyebrow threading and waxing technicians
- Makeup artists
- Exercise trainers and group fitness instructors
- Tattoo artists and piercers
- Tailors
- Shoe and leather workers and repairers
Recreation & Instruction
- Golf caddies
- Self-enrichment teachers
- Recreational and tour pilots
- Tour guides and escorts
- Travel guides
- Sports and recreation instructors
Transportation & Delivery
- Parking and valet attendants
- Taxi and rideshare drivers and chauffeurs
- Shuttle drivers
- Goods delivery people
- Personal vehicle and equipment cleaners
- Private and charter bus drivers
- Water taxi operators and charter boat workers
- Rickshaw, pedicab and carriage drivers
- Home movers
