Discover 68 Surprising Jobs That Could Soon Be Tax-Exempt on Tips: What You Need to Know!

On July 4, President Trump signed a fiscal package that includes an intriguing tax break for many workers. This provision allows eligible employees to avoid federal income tax on their tips.

Dubbed the “big, beautiful bill,” this legislation gives the Trump administration 90 days to release a list of occupations that qualify for this tax break. The Treasury Department has now published a list that includes 68 jobs. These range from traditional tipped positions like waiters to unexpected ones, such as plumbers and electricians.

This preliminary list isn’t final yet but is expected to remain largely unchanged. According to the White House, workers qualifying for this tax rule may save around $1,300 per year. However, some restrictions could limit these savings, particularly for those in jobs on the list that don’t typically involve tipping.

“The hospitality industry stands to gain the most from this new policy,” noted the law firm Fisher Phillips. Their insights make it clear that those in areas like restaurants may see the most substantial benefits.

Understanding the Restrictions

To qualify for the no-tax provision, you must hold a position on the Treasury’s list. Here are some key restrictions:

• You can earn less than $150,000 individually or $300,000 as a couple filing jointly to qualify.
• There’s a maximum of $25,000 you can claim per year from tips.
• This provision is only valid until the end of 2028.

The Jobs That Qualify

The following sectors and their respective occupations may benefit from this tax break:

Beverage & Food Service

• Bartenders (mixologists, sommeliers)
• Wait Staff (cocktail servers)
• Food Servers, Non-Restaurant (room service staff)

Entertainment and Events

• Gambling Dealers (blackjack dealers)
• Musicians and Singers (lounge singers)

Hospitality and Guest Services

• Bellhops (hotel staff)
• Concierge (guest service agents)

Home Services

• Electricians (residential experts)
• Plumbers (fixture installers)

Personal Services

• Event Planners (wedding planners)
• Photographers (wedding photographers)

Transportation and Delivery

• Taxi and Rideshare Drivers (cab drivers)
• Shuttle Drivers (airport shuttle drivers)

As consumer habits shift, industries like hospitality and personal services are adapting to these changes. A recent study shows that more people are tipping in settings like ride shares and food deliveries, possibly giving rise to new norms around gratuity.

In conclusion, this tax break aims to ease financial burdens for numerous workers, especially in hospitality. However, to fully benefit, employees must keep the listed restrictions in mind.

For more information about the list of eligible jobs, visit the official Treasury publication here.