IRS list for OBBBA tips deduction—from 2025 through 2028, workers in occupations that customarily and regularly received tips on or before December 31, 2024 may deduct up to $25,000 of qualified tips from taxable income under the One Big Beautiful Bill Act (OBBBA).
What are “qualified tips” under OBBBA?
Qualified tips are voluntary cash or charged tips received by an individual in an eligible occupation that customarily and regularly received tips on or before December 31, 2024.
They include:
- Cash, check, credit/debit-card, gift-card, or mobile-payment tips
- Tips received through valid tip-pooling or tip-sharing arrangements
They do not include:
- Mandatory service charges or auto-gratuities
- Any amounts the employer adds to the bill that customers are required to pay
Married taxpayers must file jointly to claim the deduction, and each tipped worker must have a valid Social Security Number.
The deduction is available to all filers, whether or not they itemize (i.e., “above the line”).
Income limits: The deduction phases out starting at $150,000 MAGI ($300,000 MFJ).
SSTB restriction: No deduction is allowed for self-employed individuals in a specified service trade or business (e.g., health, law, athletics, performing arts), or for employees of an SSTB employer.
Where the IRS list for OBBBA tips deduction stands now—and why it matters
The current list is preliminary. Treasury/IRS plan to include substantially the same classifications in proposed regulations and will solicit public comments before finalizing. If you’re not listed, consider submitting a comment (ideally via your trade association or a tax pro).
IRS List for OBBBA Tips Deduction: Full Occupation List (2025–2028)
Below are the occupations the IRS / Treasury identified as customarily receiving tips on or before December 31, 2024.
This list is preliminary; Treasury plans to include substantially the same classifications in proposed regulations and will invite public comment before finalizing.
If your role—or a very close match—appears here, you may qualify (subject to all other rules).
The IRS list for OBBBA tips deduction includes 68 occupations across eight sectors, ranging from hospitality and food service to wellness and transportation.
Beverage & Food Service
- Bartenders (mixologists, taproom attendants, sommeliers)
- Waitstaff (servers, cocktail servers, dining-car servers)
- Food servers outside restaurants (room-service, boat hops, beer-cart servers)
- Dining room & cafeteria attendants; bartender helpers (bussers, bar backs)
- Chefs & cooks (executive, pastry, sous, restaurant, banquet, food-truck cooks, caterers)
- Food preparation workers (salad / sandwich makers, kitchen stewards)
- Fast-food & counter workers (baristas, ice-cream servers, cafeteria servers)
- Dishwashers
- Hosts / hostesses (restaurants, lounges, coffee shops)
- Bakers (bread, cake, bagel, pastry finishers)
Entertainment & Events
- Gambling dealers (blackjack, craps, poker, roulette)
- Gambling change persons & booth cashiers (slot attendants, mutuel tellers)
- Gambling cage workers (casino cashiers)
- Sports-book writers & runners (bingo / keno / race-book)
- Dancers & performers (comedians, magicians, street performers)
- Musicians & singers
- Disc jockeys (non-radio club / event DJs)
- Digital content creators (streamers, online video creators, social media influencers, podcasters)
- Ushers, lobby attendants & ticket takers
- Locker / coat / dressing-room attendants (coat checkers, washroom attendants)
Hospitality & Guest Services
- Baggage porters & bellhops (hotel baggage handlers, curbside check-in)
- Concierges (guest-service agents, activities concierges)
- Hotel / motel / resort front-desk clerks
- Maids & housekeeping cleaners
Home Services
- Home electricians
- Home plumbers (pipefitters, sprinkler installers)
- Home HVAC mechanics & installers (A/C repair, chimney sweeps)
- Home appliance installers & repairers (dishwasher / washer repairers)
- Home cleaning services (house / pool / carpet / window cleaners)
- Locksmiths (safe installers, key makers)
- Roadside assistance workers (tow-truck drivers, battery techs, tire changers)
Personal Services
- Personal-care & service workers (companions, personal valets, butlers)
- Private event planners (wedding / party planners)
- Private event & portrait photographers (headshot / wedding)
- Private event videographers
- Event officiants (wedding / funeral / celebrants)
- Pet caretakers (groomers, sitters, walkers, kennel workers, trainers)
- Tutors (reading, math, language tutors)
- Nannies & babysitters
Personal Appearance & Wellness
- Skincare specialists (estheticians, electrologists)
- Massage therapists (deep-tissue, sports massage)
- Barbers, hairdressers, hairstylists & cosmetologists
- Shampooers
- Manicurists & pedicurists (nail technicians)
- Eyebrow threading & waxing technicians
- Makeup artists (wedding / party makeup)
- Exercise trainers & group fitness instructors (yoga, aerobics, personal training)
- Tattoo artists & piercers
- Shoe & leather workers / repairers (cobblers, shoe shiners)
Recreation & Instruction
- Golf caddies
- Self-enrichment teachers (knitting, piano, art, dance instructors)
- Recreational & tour pilots (helicopter / hot-air balloon / skydiving pilots)
- Tour guides & escorts (museum, sightseeing guides)
- Travel guides (cruise directors, river-expedition guides)
- Sports & recreation instructors (diving, ski, tennis, surf instructors)
Transportation & Delivery
- Home movers
- Parking & valet attendants
- Taxi / rideshare drivers & chauffeurs
- Shuttle drivers (airport, hotel, rental-car shuttles)
- Goods delivery workers (pizza, grocery, courier, package, appliance delivery)
- Vehicle & equipment cleaners (car-wash attendants, auto detailers, boat waxers)
- Private & charter bus drivers (motor-coach / tour bus)
- Water-taxi operators & charter-boat crews (captains, deckhands, stewards)
- Rickshaw / pedicab / carriage drivers (bike-taxi & horse-carriage drivers)
How much is the tips deduction?
The law allows up to $25,000 per year (2025–2028) in qualified tips to be excluded from federal income tax. This figure comes from OBBBA and is restated in the source article.
Action step if you’re not on the list
If your job title isn’t listed on the IRS list for OBBBA tips deduction, consider submitting a public comment when the proposed regulations are published—ideally through your trade association or with a tax professional’s help.
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