US Treasury Releases List of 68 Occupations Eligible for No-Tax Tips Deduction

President Donald Trump signed the One Big Beautiful Bill Act into law in July 2025, which includes a provision exempting workers from federal income taxes on up to $25,000 of wages earned from tips, applicable through 2028. The U.S. Treasury Department released a preliminary list of 68 occupations that "customarily and regularly received tips" as of December 31, 2024, qualifying these workers for the tax deduction. This list includes traditional tipped jobs such as golf caddies and blackjack dealers, as well as less expected roles like podcasters, social media influencers, electricians, and house painters. The exemption applies to individuals making less than $150,000 annually (or $300,000 if filing jointly), with the threshold adjusting for inflation in future years. While federal law treats tips as taxable income, some states like Hawaii continue to tax tips under their excise tax laws despite this federal exemption. The Treasury and IRS anticipate the final list of qualifying occupations will closely resemble the preliminary list currently available on the Treasury Department website.