President Trump’s new “no tax on tips” policy has moved closer to reality, and it is already bringing relief to millions of Americans who rely on tips to make ends meet. The Treasury Department and IRS are now preparing a full list of jobs that will be covered, and for many workers, this means more money in their pockets starting soon.
For years, tips were treated as taxable income. Now, under this plan, eligible workers can keep more of what they earn without worrying about giving a portion to the IRS. Let us take a closer look at which jobs qualify and what this could mean for you.
What is Trump’s no tax on tips policy
The new law, passed earlier this year as part of Trump’s “One Big Beautiful Bill,” allows tipped workers to earn up to $25,000 in tax-free tips.
This is not for everyone, but it is aimed at industries where tips are a major part of income. According to The Budget Lab at Yale, around 4 million Americans—about 2.5% of the workforce—fall into this category.
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Food and beverage service jobs that qualify
One of the largest groups covered is food and beverage workers. If you are in the restaurant or hospitality business, chances are your job makes the list.
Here are some of the qualifying roles:
- Bartenders and wait staff
- Food servers, cafeteria attendants, and counter workers
- Chefs, cooks, bakers, and food prep workers
- Dishwashers and host staff at restaurants or coffee shops
For anyone working in a diner, coffee shop, or high-end restaurant, this policy could help stretch paychecks further.
Entertainment and event workers included
If you work in the entertainment or events world, you also qualify under this policy. Additionally, these roles usually depend more on tips, especially during busy periods. Jobs included are:
- Casino dealers, cashiers, and cage workers
- Musicians, singers, and dancers
- DJs, ushers, lobby attendants, and ticket takers
- Locker room and coatroom attendants
From nightclubs to concert venues, these workers can now expect to keep more of their tip income.
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Hospitality and personal service jobs covered
The hospitality industry is another major winner under this policy. Jobs like:
- Baggage porters, bellhops, and concierges
- Hotel and resort clerks, maids, and housekeepers
- Nannies, babysitters, and tutors
- Event planners, photographers, and videographers
- Pet caretakers
This is a big deal for workers in hotels, resorts, and households where tips often add up to a significant share of earnings.
Appearance and wellness industry workers
Personal care and wellness jobs are also included, which could be life-changing for many independent workers. These include:
- Barbers, hairdressers, and hairstylists
- Massage therapists, skincare specialists, and makeup artists
- Nail technicians, eyebrow threaders, and waxing specialists
- Tattoo artists, piercers, and fitness instructors
For small business owners and freelancers in beauty and wellness, not paying taxes on tips could make a noticeable difference in take-home pay.
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Transportation and delivery workers
Drivers and delivery workers are also part of the tax-free tip group. That means:
- Taxi, rideshare, and shuttle drivers
- Parking and valet attendants
- Delivery workers and movers
- Charter boat operators, pedicab drivers, and carriage drivers
If you have ever relied on tips after a long night driving or hauling, this policy directly benefits you.
What this means for tipped workers
This policy is meant to ease the financial pressure on workers in industries where tips are central to income. While not every American qualifies, millions will soon see a lighter tax burden. For many, this is more than just a small break—it is money they can now use to pay bills, save, or support their families.
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