If tips are a regular part of your income, there could be some welcome news on the horizon. A leaked Treasury Department list shows 68 occupations that may qualify for a new tax deduction on tips, ranging from food service workers and entertainers to personal care professionals and even digital content creators. While the final IRS list isn’t expected until October 2025, this early look gives workers and business owners a better idea of who may benefit.
This proposed list, as first reported by Axios, includes:
Beverage and food service
- Bartenders
- Wait staff
- Food servers, non-restaurant
- Dining room and cafeteria attendants and bartender helpers
- Chefs and cooks
- Food preparation workers
- Fast food and counter workers
- Dishwashers
- Host staff, restaurant, lounge, and coffee shop
- Bakers
Entertainment and events
- Gambling dealers
- Gambling change persons and booth cashiers
- Gambling cage workers
- Gambling and sports book writers and runners
- Dancers
- Musicians and singers
- Disc jockeys (except radio)
- Entertainers and performers
- Digital content creators
- Ushers, lobby attendants and ticket takers
- Locker room, coatroom and dressing room attendants
Hospitality and guest services
- Baggage porters and bellhops
- Concierges
- Hotel, motel and resort desk clerks
- Maids and housekeeping cleaners
Home services
- Home maintenance and repair workers
- Home landscaping and groundskeeping workers
- Home electricians
- Home plumbers
- Home heating/air conditioning mechanics and installers
- Home appliance installers and repairers
- Home cleaning service workers
- Locksmiths
- Roadside assistance workers
Personal services
- Personal care and service workers
- Private event planners
- Private event portrait photographers
- Private event videographers
- Event officiants
- Pet caretakers
- Tutors
- Nannies and babysitters
Personal appearance and wellness
- Skincare specialists
- Massage therapists
- Barbers, hairdressers, hairstylists and cosmetologists
- Shampooers
- Manicurists and pedicurists
- Eyebrow threading and waxing technicians
- Makeup artists
- Exercise trainers and group fitness instructors
- Tattoo artists and piercers
- Tailors
- Shoe and leather workers and repairers
Recreation and instruction
- Golf caddies
- Self-enrichment teachers
- Recreational and tour pilots
- Tour guides and escorts
- Travel guides
- Sports and recreation instructors
Transportation and delivery
- Parking and valet attendants
- Taxi and rideshare drivers and chauffeurs
- Shuttle drivers
- Goods delivery people
- Personal vehicle and equipment cleaners
- Private and charter bus drivers
- Water taxi operators and charter boat workers
- Rickshaw, pedicab, and carriage drivers
- Home movers
The tip deduction will apply from 2025 through 2028, offering eligible employees and self-employed individuals the chance to deduct up to $25,000 of qualified tips per year (subject to income limits). That means many small business owners and their employees could see a meaningful tax break in the coming years.
At Padgett, we’ll continue monitoring developments so you don’t have to sift through the fine print. If your business or personal income relies on tips, this is a change worth paying attention to. And when the IRS finalizes the official list, we’ll be here to help you understand what it means for your tax planning. Reach out to us with questions!