How the list works
The No Tax on Tips deduction only applies to tips earned in an occupation that "customarily and regularly" received tips before 2025. Congress left the list to the Treasury Department, which proposed 68 occupations in September 2025 and finalized 71 occupations in eight categories in April 2026. Each has a three-digit Treasury Tipped Occupation Code (TTOC) that employers put in Box 14b of your W-2 (or box 1c of a 1099-NEC) starting with tax year 2026.
The list is closed. There's no "facts and circumstances" test for jobs that aren't on it. Treasury specifically turned down requests to add retail cashiers, accountants and tax preparers, chiropractors, and lawyers doing discounted work.
Three occupations were added in the final version: visual artists (509), floral designers (510) and gas pump attendants (810). Several were broadened: wait staff now explicitly includes banquet staff, bellhops includes doormen, delivery now covers app-based drivers, and pet caretakers includes show-animal handlers.
Who is excluded even if their job is listed
- Specified service businesses. Tips earned in — or by employees of — a business in health, law, accounting, consulting, financial services, performing arts, athletics and similar fields don't qualify. A massage therapist in a private spa qualifies; the same job inside a medical practice may not. The IRS said it won't enforce this exclusion until final rules on it are issued, as long as your occupation is on the list.
- Owners and family. If you own 5% or more of the business paying the tip, or the "tip" is really paid by your employer, it's treated as wages.
- Income above the phase-out. The deduction drops $100 for every $1,000 of income over $150,000 ($300,000 joint) and is gone at $400,000 ($550,000 joint).
- Married filing separately can't claim it. Married couples must file jointly.
What counts as a qualified tip
A tip is qualified if the customer paid it voluntarily, wasn't required to, and decided the amount. Cash, card, check, app payments, casino chips and tip-pool shares all count. Mandatory service charges and auto-gratuities don't. The IRS even addressed tablet checkouts: if the screen has a "no tip" or custom-amount option, whatever the customer picks is a tip; if the lowest option is a forced 15%, only the amount above the minimum counts.
Only reported tips qualify — tips your employer put on your W-2, or that you declared on Form 4137, or on your Schedule C if self-employed. How to read code TP on your W-2.
Not sure if you qualify?
Run the tips deduction calculator →
Frequently asked questions
Do cooks and dishwashers qualify?
Yes — chefs and cooks (105), food prep workers (106) and dishwashers (108) are all on the list, so tip-pool shares they receive qualify.
Do DoorDash and Uber drivers qualify?
Yes. Taxi and rideshare drivers are code 802; goods delivery people, including app-based drivers, are 804. As self-employed workers, their deduction is capped at the net profit of the business.
Do nurses, teachers or retail workers qualify?
No. Those occupations aren't on the list, and health care is a specified service field.
Do casino dealers qualify?
Yes — gambling dealers (201), change persons and booth cashiers (202), cage workers (203) and sports book writers (204).
Can the list change?
Treasury could amend the regulations, but as of the April 2026 final rule it is fixed for tax years 2025–2028.