Treasury posted a preliminary list of 68 occupations that customarily and regularly receive tips, which may soon be eligible for the “no tax on tips” provision of H.R. 1, commonly known as the One Big Beautiful Bill Act.
The provision allows certain workers to deduct up to $25,000 of “qualified tips” yearly from 2025 through 2028. The deduction phases out once modified adjusted gross income exceeds $150,000.
The extensive list includes workers in a range of industries, including beverage and food services, entertainment and events, hospitality and guest services, home and personal services, and transportation and delivery.
Treasury said it will soon include the official proposed list of the “no tax on tips” occupations in the Federal Register as part of forthcoming proposed regulations and will request public comments. Read more.