Which Jobs Qualify for No Tax on Tips? Eligible Occupations

Last checked 2026-10-25 against IRS guidance

Only tips earned in an occupation that "customarily and regularly" received tips on or before December 31, 2024 qualify. The law required the IRS to publish that list by October 2, 2025, and Treasury released it with proposed regulations in September 2025.

What kinds of jobs are on the list?

The list groups occupations into categories such as beverage and food service, entertainment and events, hospitality and guest services, home services, personal services, personal appearance and wellness, recreation and instruction, and transportation and delivery. Examples include bartenders, wait staff, food delivery drivers, hairstylists, hotel bellhops and housekeepers, rideshare drivers, and tour guides.

We don't reproduce the full code list here because it may be revised in final regulations. Check the current list in the Treasury/IRS guidance before relying on it for your job title. Unconfirmed on this site: whether final regulations have changed the proposed list.

My job isn't listed. Can I still deduct tips?

Generally no. Tips must be received in a listed occupation. Your W-2 or 1099 reporting is expected to show an occupation code starting with the 2026 forms.

• Treasury/IRS proposed regulations and occupation list (Federal Register search)

Sources

• IRS Fact Sheet FS-2025-03: tax deductions for working Americans
• 26 U.S. Code § 224 – Qualified tips and § 225 – Qualified overtime compensation
• IRS FS-2026-13: overtime deduction Q&A
• Public Law 119-21 (congress.gov)

→ Estimate your deduction with the free calculator

More guides

• 7 Common Mistakes Claiming No Tax on Tips or Overtime
• How to Claim No Tax on Tips and Overtime on Your Return (Schedule 1-A)
• No Tax on Tips: Federal Rules Explained (2025–2028)
• No Tax on Overtime: How Much Will I Save? Real Examples
• No Tax on Tips & Overtime Phase-Out Explained (MAGI $150,000 / $300,000)
• What Counts as Qualified Overtime for the No Tax on Overtime Deduction
• No Tax on Tips for Self-Employed and Gig Workers
• Does No Tax on Tips Apply to State Taxes?
• W-2 Box 12 Codes TP and TT: Tips and Overtime Reporting