The Treasury Department has released preliminary guidance on the jobs that are expected to qualify under the “No Tax on Tips” provision of the One Big Beautiful Bill Act, commonly referred to as the OBBBA or OB3. The initial list of jobs that will fall under this new tax deduction is provided below; however, the official list is expected to be released next month. While this list was intended to provide taxpayers and employers early guidance, the IRS anticipates the final list will, most likely be similar to this one.
It is important to note that the rules listed in the bill related to how employees qualify must still be met, notably requiring a Social Security number and reporting the tips as wage income, among others. This provision of the tax bill has the potential, but not a guarantee, to lower the federal income tax liability for some employees. As this provision of the bill is related only to federal income tax, employees may still be subject to various state income taxes and other taxes like Social Security and Medicare, depending on their particular fact pattern and geographic location.
As a reminder, the IRS also recently announced that there is expected to be no changes to withholding tables and no expected changes to informational reporting forms (W-2s, 1099s) for the 2025 tax year in order to minimize the potential disruption.
Employers may consider informing their employees with communications on any updates as they learn them, but should stop short of providing any tax advice to their employees.
Jobs Expected to Qualify for “No Tax on Tips” Provision
Here is the full listing of jobs:
Beverage and Food Services
- Bartenders (mixologists, sommeliers)
- Wait staff (cocktail servers, dining car attendants)
- Food servers, non-restaurant (room service staff, beer cart attendants)
- Dining room and cafeteria attendants and bartender helpers (bussers, bar backs)
- Chefs and cooks (executive chefs, sous chefs)
- Food preparation workers (salad makers, sandwich makers)
- Fast-food and counter workers (baristas, ice cream servers)
- Dishwashers and kitchen helpers (dishwashers, stewards)
- Hosts and hostesses (maître d's, lounge greeters)
- Bakers (pastry chefs, cake decorators)
Entertainment and Events
- Gambling dealers (blackjack dealers, poker dealers)
- Gambling change persons and booth cashiers (slot attendants, cage clerks)
- Gambling and sports book writers/runners (bingo callers, ticket runners)
- Dancers (club dancers, cabaret performers)
- Musicians and singers (lounge singers, instrumentalists)
- Disc jockeys (wedding DJs, nightclub DJs)
- Entertainers and performers (comedians, magicians)
- Digital content creators (live streamers, social media influencers)
- Ushers and ticket takers (theater ushers, concert hall attendants)
- Locker room and coatroom attendants (coat check staff, dressing room attendants)
Hospitality and Guest Services
- Baggage porters and bellhops (hotel bell staff, cruise ship porters)
- Concierges (hotel guest service agents, resort concierges)
- Hotel, motel and resort desk clerks (front-desk clerks, guest check-in staff)
- Maids and housekeeping cleaners (hotel housekeepers, resort cleaning staff)
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Home Services
- Home maintenance and repair workers (handypersons, house painters, roofers)
- Landscaping and groundskeeping workers (gardeners, tree trimmers)
- Electricians (residential wiring specialists, lighting installers)
- Plumbers (pipefitters, fixture installers)
- Heating and air conditioning mechanics (furnace technicians, air conditioner installers)
- Appliance installers and repairers (dishwasher repairers, refrigerator technicians)
- Home cleaning service workers (house cleaners, window washers)
- Locksmiths (key makers, safe installers)
- Roadside assistance workers (tow truck drivers, tire repairers)
Personal Services
- Personal care and service workers (valets, butlers)
- Private event planners (wedding planners, party planners)
- Photographers (wedding photographers, portrait photographers)
- Videographers (event videographers, wedding videographers)
- Event officiants (wedding officiants, clergy)
- Pet caretakers (dog walkers, pet groomers)
- Tutors (language tutors, math tutors)
- Nannies and babysitters (au pairs, childcare workers)
Personal Appearance and Wellness
- Skincare specialists (estheticians, facialists)
- Massage therapists (sports masseurs, deep tissue therapists)
- Barbers and hairdressers (hairstylists, cosmetologists)
- Shampooers and salon assistants (shampooers, junior stylists)
- Manicurists and pedicurists (nail technicians, spa pedicurists)
- Eyebrow threading and waxing technicians (brow specialists, waxing professionals)
- Makeup artists (bridal makeup artists, theatrical makeup specialists)
- Exercise trainers and fitness instructors (yoga instructors, personal trainers)
- Tattoo artists and piercers (tattoo designers, body piercers)
- Tailors (seamstresses, alteration specialists)
- Shoe and leather workers (cobblers, shoe shiners)
Recreation and Instruction
- Golf caddies (caddies, golf assistants)
- Self-enrichment teachers (art instructors, dance teachers)
- Recreational and tour pilots (hot-air balloon pilots, sightseeing pilots)
- Tour guides and escorts (museum guides, city guides)
- Travel guides (cruise directors, expedition leaders)
- Sports and recreation instructors (ski instructors, surfing teachers)
Transportation and Delivery
- Parking and valet attendants (garage valets, hotel parking attendants)
- Taxi and rideshare drivers (cab drivers, rideshare drivers)
- Shuttle drivers (airport shuttle drivers, hotel shuttle drivers)
- Goods delivery workers (pizza delivery drivers, grocery delivery workers)
- Vehicle and equipment cleaners (car detailers, boat cleaners)
- Bus drivers (tour bus drivers, charter bus drivers)
- Water taxi operators and charter boat workers (ferry captains, fishing charter crew)
- Rickshaw and pedicab drivers (carriage drivers, pedicab operators)
- Home movers (furniture movers, packers)
Contact Us
If you have any questions about the No Tax on Tips Provision or would like to discuss further, reach out to our Business Tax Services Team.
