Jobs Covered Under Trump’s ‘No Tax on Tips’ Plan Revealed

The Trump administration released its comprehensive list of occupations eligible for tax-free tips under the new Republican tax legislation, covering millions of American workers across diverse industries in what represents one of the most significant changes to tip taxation in decades.

The Treasury Department published the preliminary list Tuesday, identifying jobs ranging from traditional service roles like golf caddies and blackjack dealers to modern positions including podcasters and social media influencers who receive gratuities through digital platforms.

President Donald Trump signed the legislation in July, creating a temporary provision that eliminates federal income taxes on tips for qualifying workers through 2028, fulfilling a key campaign promise to support service industry employees.

The tax relief applies to workers earning less than $160,000 annually in 2025, potentially benefiting approximately 4 million Americans in tipped occupations across the nation’s economy.

Tipped workers represent roughly 2.5 percent of all jobs in the United States as of 2023, according to Yale Budget Lab estimates, indicating the widespread impact of this new tax policy.

The administration met its 90-day deadline to publish qualifying occupations following the bill’s signing, with the complete list now available on the Treasury Department website for public review.

Eight distinct categories encompass the eligible positions: beverage and food service, entertainment and events, hospitality and guest services, home services, personal services, personal appearance and wellness, recreation and instruction, and transportation and delivery.

Traditional service industry workers including sommeliers, cocktail waiters, pastry chefs and cake bakers qualify for the tax exemption alongside entertainment professionals like bingo workers, club dancers and disc jockeys.

The beverage and food service category includes bartenders, wait staff, food servers, dining room attendants, chefs, cooks, food preparation workers, fast food counter workers, dishwashers, and host staff at restaurants, lounges and coffee shops.

Modern digital economy workers also benefit significantly, with streamers and online video creators joining the comprehensive list of eligible occupations as the gig economy continues expanding.

Entertainment and events workers encompass gambling dealers, gambling change persons, booth cashiers, cage workers, sports book writers, runners, dancers, musicians, singers, entertainers, performers, digital content creators, ushers, lobby attendants and ticket takers.

The home services category includes electricians, house cleaners, gardeners, home maintenance and repair workers, landscaping and groundskeeping workers, plumbers, heating and air conditioning mechanics, appliance installers, locksmiths and roadside assistance workers.

Personal care professionals such as massage therapists, yoga instructors, wedding planners, event photographers, videographers, event officiants, pet caretakers, tutors, nannies and babysitters receive coverage under the new tax provision.

Hospitality and guest services workers including baggage porters, bellhops, concierges, hotel and motel desk clerks, resort staff and maids qualify for the federal income tax exemption on gratuities.

Recreation workers including skydiving pilots, ski instructors, parking garage attendants, golf caddies, self-enrichment teachers, recreational pilots, tour guides, escorts, travel guides and sports instructors benefit from the legislation.

Personal appearance and wellness professionals covered include skincare specialists, barbers, hairdressers, hairstylists, cosmetologists, shampooers, manicurists, pedicurists, eyebrow threading technicians, waxing technicians, makeup artists, exercise trainers, group fitness instructors, tattoo artists, piercers, tailors and shoe repair workers.

Transportation and delivery workers encompass parking attendants, valet attendants, taxi drivers, rideshare drivers, chauffeurs, shuttle drivers, goods delivery personnel, vehicle cleaners, equipment cleaners, private bus drivers, charter bus drivers, water taxi operators, charter boat workers, rickshaw drivers, pedicab operators, carriage drivers and home movers.

NBC reported that Budget Lab analysis reveals limited overall economic impact due to the lower income levels typical among tipped workers, with more than 37 percent facing no federal income tax obligations in 2022 before this legislation.

The report notes potential behavioral changes as workers and employers may restructure compensation to take advantage of the tip tax exemption, possibly increasing the provision’s overall cost to federal revenues.

“The larger and far more uncertain effect would stem from behavioral changes incentivized by the bill, such as substitution into tipped employment and tipped income, which would increase the bill’s overall cost,” according to Budget Lab director Ernie Tedeschi’s comprehensive report.

Congressional budget analysts project the provision will increase the federal deficit by $40 billion through 2028, while the nonpartisan Joint Committee on Taxation estimates $32 billion in costs over ten years.

Workers must report tips to employers and include them on W-2 forms to qualify for the tax exemption, ensuring proper documentation and preventing tax avoidance schemes.

Payroll taxes for Social Security and Medicare programs remain in effect on tip income, maintaining funding for these essential social insurance programs.

State and local taxes continue to apply to tip income despite the federal exemption under the new legislation, meaning workers in high-tax states may still face significant tax obligations.

NBC further noted that recent polling from The Associated Press-NORC Center for Public Affairs Research shows mixed public reception, with half of American adults expecting the tax law to primarily benefit wealthy individuals rather than working-class Americans.

Approximately 60 percent of poll respondents believe the legislation will harm rather than help low-income Americans, according to the comprehensive survey results released alongside the Treasury Department announcement.

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