The 68 occupations that can deduct up to $25,000 in tips.
- Maria Alvarez
- 2 days ago
- 2 min read
This is from a preliminary list released by Treasury/IRS under the One Big Beautiful Bill (OBBB) Act as of Oct 18th, 2025. The final list may change. HRMorning+4U.S. Department of the Treasury+4IRS+4
Background & Rules
Starting tax year 2025 through 2028, workers in certain occupations that “customarily and regularly received tips” (on or before December 31, 2024) may deduct up to $25,000 of qualified tip income from their federal taxable income (subject to income limits, reporting, and other rules). Maynard Nexsen+3Journal of Accountancy+3Akerman LLP+3
The Treasury and IRS provided a preliminary list of 68 occupations that may qualify for this deduction. PBMares+3U.S. Department of the Treasury+3IRS+3
To qualify, tips must be “qualified” (see the law’s definition) and must come from a qualifying occupation. Littler Mendelson P.C.+2IRS+2
The Preliminary List of 68 Occupations
Here are the occupations (grouped into categories) from Treasury’s published preliminary list: VensureHR+5U.S. Department of the Treasury+5IRS+5
Category | Occupations |
Beverage & Food Service | Bartenders; Wait Staff; Food Servers (non-restaurant); Dining Room & Cafeteria Attendants / Bartender Helpers; Chefs & Cooks; Food Preparation Workers; Fast Food & Counter Workers; Dishwashers; Host Staff (restaurant/lounge/coffee shop); Bakers U.S. Department of the Treasury+2Maynard Nexsen+2 |
Entertainment & Events | Gambling Dealers; Gambling Change Persons / Booth Cashiers; Gambling Cage Workers; Gambling & Sports Book Writers/Runners; Dancers; Musicians & Singers; Disc Jockeys (except radio); Entertainers / Performers; Digital Content Creators; Ushers, Lobby Attendants, Ticket Takers; Locker Room / Coatroom / Dressing Room Attendants PBMares+3U.S. Department of the Treasury+3Maynard Nexsen+3 |
Hospitality & Guest Services | Baggage Porters / Bellhops; Concierges; Hotel / Motel / Resort Desk Clerks; Maids / Housekeeping Cleaners Maynard Nexsen+2PBMares+2 |
Home Services | Home Maintenance & Repair Workers; Home Landscaping & Groundskeeping Workers; Home Electricians; Home Plumbers; Home Heating & Air Conditioning Mechanics / Installers; Home Appliance Installers & Repairers; Home Cleaning Service Workers; Locksmiths; Roadside Assistance Workers HRMorning+3U.S. Department of the Treasury+3Maynard Nexsen+3 |
Personal Services | Personal Care & Service Workers; Private Event Planners; Private Event & Portrait Photographers; Private Event Videographers; Event Officiants; Pet Caretakers; Tutors; Nannies / Babysitters Maynard Nexsen+2HRMorning+2 |
Personal Appearance & Wellness | Skincare Specialists; Massage Therapists; Barbers, Hairdressers, Hairstylists, Cosmetologists; Shampooers; Manicurists / Pedicurists; Makeup Artists; Exercise Trainers / Group Fitness Instructors; Tattoo Artists / Piercers; Tailors; Shoe & Leather Workers / Repairers; Eyebrow Threading & Waxing Technicians U.S. Department of the Treasury+3Maynard Nexsen+3PBMares+3 |
Recreation & Instruction | Golf Caddies; Self-Enrichment Teachers; Sports & Recreation Instructors; Tour Guides; Travel Guides; Recreational / Tour Pilots HRMorning+2PBMares+2 |
Transportation & Delivery | Parking & Valet Attendants; Taxi / Rideshare Drivers & Chauffeurs; Shuttle Drivers; Goods Delivery People; Personal Vehicle / Equipment Cleaners; Private & Charter Bus Drivers; Water Taxi / Charter Boat Workers; Rickshaw / Pedicab / Carriage Drivers; Home Movers VensureHR+4Maynard Nexsen+4U.S. Department of the Treasury+4 |
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