Unveiling the 68 Jobs Exempt from Tax on Tips Under Trump's New Policy
Newsnation1 week ago
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Unveiling the 68 Jobs Exempt from Tax on Tips Under Trump's New Policy

SALARY AND BENEFITS
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Summary:

  • The no tax on tips policy under Trump's bill allows workers in 68 specific jobs to deduct up to $25,000 annually from taxable income for tips.

  • Approximately 4 million Americans in tipped industries are affected, covering about 2.5% of the workforce.

  • Eligible jobs are divided into eight categories, including beverage and food service, entertainment, and transportation.

  • The policy is effective through 2028 and was described as expansive but fair by the Treasury Department.

  • This tax break aims to provide financial benefits to service workers who depend on tips for income.

The Treasury Department has disclosed the specific jobs eligible for tax deductions under President Donald Trump's "no tax on tips" policy, part of the recently enacted "One Big Beautiful Bill." This policy, effective through 2028, allows workers in certain roles to deduct up to $25,000 annually from their taxable income for tips received.

Key Details of the Policy

In July 2025, Trump signed this bill into law after it passed narrowly in Congress. The initiative aims to benefit approximately 4 million Americans in tipped industries, representing about 2.5% of the national workforce, as estimated by Yale's budget lab in 2023. Treasury Secretary Scott Bessent described the list of eligible jobs as "expansive but fair," ensuring broad coverage while maintaining fairness.

Categories of Eligible Jobs

The Treasury Department has categorized the 68 qualifying jobs into eight groups:

Beverage and Food Service

  • Bartenders
  • 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 and 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 & Performers
  • Digital Content Creators
  • Ushers, Lobby Attendants and Ticket Takers
  • Locker Room, Coatroom and Dressing Room Attendants

Hospitality and 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/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 and 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 and Instruction

  • Golf Caddies
  • Self-Enrichment Teachers
  • Recreational and Tour Pilots
  • Tour Guides and Escorts
  • Travel Guides
  • Sports and Recreation Instructors

Transportation and 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

This comprehensive list ensures that a wide range of service-oriented roles can benefit from the tax break, providing financial relief to workers who rely on tips as a significant part of their income.

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