Which Tipped Jobs Qualify — Full IRS Occupation List (2025 & 2026)
Complete IRS "customarily tipped" occupation list (70+ jobs, per final Treasury regs) that qualify for the OBBB $25,000 tips deduction, including MAGI phase-outs, the SSTB rule (on hold under Notice 2025-69), and how to claim it.
We verify every calculator and guide against primary IRS sources — Revenue Procedures, IRS publications, and the tax code — and cite them so you can check the numbers yourself.
The one-paragraph answer
The OBBB Act (Public Law 119-21) lets workers in 70+ customarily tipped occupations (71 listed below) deduct up to $25,000 of qualified tips per year through 2028. Eligibility phases out starting at $150,000 MAGI single / $300,000 MFJ. The statutory exclusion for Specified Service Trade or Business (SSTB) tips is on hold under IRS Notice 2025-69 transition relief for anyone in a listed occupation (2025 and 2026). The occupation list is drawn from the final Treasury regulations under IRC §224 (2026) and IRS Notice 2025-69 — the final rule added visual artists, floral designers, and gas pump attendants to the earlier proposed list.
Full occupation list
If your job is on this list and your tips are voluntary and customer-directed, your tips can qualify — if the person who received them has a Social Security number valid for employment and, if you're married, you file a joint return. Jobs not on the list are presumed not to be customarily tipped and do not qualify — even if you occasionally receive tips.
These are the 71 Treasury Tipped Occupation Codes (TTOC) from the IRS list of occupations that customarily and regularly received tips on or before December 31, 2024, shown as code — occupation.
Beverage & food service
- 101 — Bartenders
- 102 — Wait staff
- 103 — Food or beverage servers, non-restaurant
- 104 — Dining room and cafeteria attendants and bartender helpers
- 105 — Chefs and cooks
- 106 — Food preparation workers
- 107 — Fast food and counter workers
- 108 — Dishwashers
- 109 — Host staff, restaurant, lounge, and coffee shop
- 110 — Bakers
Entertainment & events
- 201 — Gambling dealers
- 202 — Gambling change persons and booth cashiers
- 203 — Gambling cage workers
- 204 — Gambling and sports book writers and runners
- 205 — Dancers
- 206 — Musicians and singers
- 207 — Disc jockeys, except radio
- 208 — Entertainers and performers
- 209 — Digital content creators
- 210 — Ushers, lobby attendants, and ticket takers
- 211 — Locker room, coatroom, and dressing room attendants
Hospitality & guest services
- 301 — Baggage porters and bellhops
- 302 — Concierges
- 303 — Hotel, motel, and resort desk clerks
- 304 — Maids and housekeeping cleaners
Home services
- 401 — Home maintenance and repair workers
- 402 — Home landscaping and groundskeeping workers
- 403 — Home electricians
- 404 — Home plumbers
- 405 — Home heating and air conditioning mechanics and installers
- 406 — Home appliance installers and repairers
- 407 — Home cleaning service workers
- 408 — Locksmiths
- 409 — Roadside assistance workers
Personal services
- 501 — Personal care and service workers
- 502 — Private event planners
- 503 — Private event and portrait photographers
- 504 — Private event videographers
- 505 — Event officiants
- 506 — Pet and show animal caretakers
- 507 — Tutors
- 508 — Nannies and babysitters
- 509 — Visual artists
- 510 — Floral designers
Personal appearance & wellness
- 601 — Skincare specialists
- 602 — Massage therapists
- 603 — Barbers, hairdressers, hairstylists, and cosmetologists
- 604 — Shampooers
- 605 — Manicurists and pedicurists
- 606 — Eyebrow and eyelash technicians
- 607 — Makeup artists
- 608 — Exercise trainers and group fitness instructors
- 609 — Tattoo artists and piercers
- 610 — Tailors
- 611 — Shoe and leather workers and repairers
Recreation & instruction
- 701 — Golf caddies
- 702 — Self-enrichment teachers
- 703 — Recreational and tour pilots
- 704 — Tour guides
- 705 — Travel guides
- 706 — Sports and recreation instructors
Transportation & delivery
- 801 — Parking and valet attendants
- 802 — Taxi and rideshare drivers and chauffeurs
- 803 — Shuttle drivers
- 804 — Goods delivery people
- 805 — Personal vehicle and equipment cleaners
- 806 — Private and charter bus drivers
- 807 — Water taxi operators and charter boat workers
- 808 — Rickshaw, pedicab, and carriage drivers
- 809 — Home movers
- 810 — Gas pump attendants
Eligibility rules in plain English
- $25,000 annual cap per return (not per job).
- MAGI phase-out: begins at $150,000 (single) / $300,000 (MFJ). Deduction drops $100 per $1,000 of MAGI over the threshold.
- Married? File jointly: married filing separately can't claim it (Schedule 1-A).
- Valid SSN: the tip recipient needs a Social Security number valid for employment.
- SSTB rule on hold: by statute, tips earned in a §199A specified service trade or business don't qualify, but under IRS Notice 2025-69 the IRS treats anyone in a listed tipped occupation (employee or not) as not in an SSTB until January 1 of the year after final SSTB regulations, so it doesn't block 2025 or 2026 tips.
- Self-employed cap: the deduction can't exceed the net income of the business the tips came from (IRC §224(c)); a business at a loss gets $0.
- Voluntary tips only: mandatory service charges are wages, not tips.
- Reported tips only: tips must appear on a W-2 or 1099 or be reported on your own Form 4137; tips never reported anywhere don't qualify.
- Below the line (Schedule 1-A): available whether you itemize or take the standard deduction; reduces taxable income, not AGI.
- Sunset: applies to tax years 2025–2028 unless Congress extends.
How to claim it
- Confirm your occupation is on Treasury's list (above).
- Employees: for 2025, find the tips you reported to your employer in W-2 box 7 (or on your Forms 4070 or an employer tip statement); for 2026, in box 12 with code TP. Box 8 shows allocated tips, which are not reported tips — tips you received but did not report go on Form 4137.
- Self-employed: report gross tips as receipts on Schedule C; the deduction is separately claimed.
- Calculate the deduction on the new supplemental worksheet released with Notice 2025-69.
- Enter the deduction on Schedule 1-A; its total carries to Form 1040 line 13b (it is not an adjustment to income).
- Run our Tips Deduction Calculator to see the phase-out effect at your MAGI before filing.
Related guides
Sources & References
Primary references used for this content
One Big Beautiful Bill Act
Statutory text for the 2025-2028 deductions
View on congress.gov
2026 Inflation Adjustments
Official 2026 brackets, deductions, and thresholds
View on irs.gov
Taxable income defined
Standard deduction and the below-the-line deduction list
View on law.cornell.edu
✓3 primary sources; links re-checked on a weekly rotation by the source watcher
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Estimate my tips deductionFrequently Asked Questions
How many occupations qualify for the 'No Tax on Tips' deduction?
Treasury's FINAL regulations under IRC §224 list 70+ customarily tipped occupations across food service, hospitality, personal services, entertainment, home services, and transportation. The final rule added visual artists, floral designers, and gas pump attendants to the earlier proposed list. Full list is above.
What is the maximum deduction?
Up to $25,000 in qualified tips per year (2025–2028). The deduction is a below-the-line deduction, so you can claim it even without itemizing.
What is the income phase-out?
The deduction begins phasing out at $150,000 MAGI (single) / $300,000 MAGI (married filing jointly) and drops $100 per $1,000 over the threshold — a full phase-out over the next $250,000 for the maximum $25,000 deduction (sooner for smaller deductions). Married couples must file jointly to claim it at all.
Are Specified Service Trade or Business (SSTB) tips excluded?
Not for now. By statute, tips from a §199A SSTB (health, law, accounting, financial services, consulting, athletics, performing arts, etc.) are not qualified tips. But under IRS Notice 2025-69 transition relief, until January 1 of the year after final SSTB regulations are issued, the IRS treats anyone in a listed tipped occupation, employee or not, as not in an SSTB, and the final tips regulations (T.D. 10044) left the SSTB section reserved. So the SSTB rule does not block 2025 or 2026 tips in a listed occupation; it returns once final SSTB regulations apply.
How do I claim it?
Only tips that appear on an information statement (Form W-2, 1099-NEC, 1099-MISC or 1099-K) or that you report yourself on Form 4137 count. For 2025, employees can use the social security tips in W-2 box 7, their Forms 4070 tip reports, or an employer tip statement (Notice 2025-69); starting with 2026 W-2s, reported cash tips appear in box 12 with code TP. Box 8 (allocated tips) is not a record of tips you reported — it is excluded from box 1 and is often blank. Claim the deduction on Schedule 1-A; its total goes on Form 1040 line 13b.
Does this apply to auto-gratuity or mandatory service charges?
No. Mandatory service charges (e.g. large-party auto-gratuity, banquet fees) are wages under the FLSA and do not qualify. Only voluntary tips left at the customer's discretion count.
Sources & References
Primary references used for this content
Qualified Tips & Overtime Guidance (2025)
OBBBA tips & overtime deduction guidance
View on irs.gov
Taxable and Nontaxable Income
Income types
View on irs.gov
Your Federal Income Tax
For Individuals
View on irs.gov
✓3 primary sources; links re-checked on a weekly rotation by the source watcher
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