Here’s Who’s Eligible For Trump’s New Policy

Topline

Influencers, rideshare drivers, performers, baristas and more will be covered under the “No Tax on Tips” policy passed as part of President Donald Trump’s recent spending bill, multiple reports suggest, as the Trump administration is poised to roll out more details about one of the president’s signature economic policies, which could impact millions of taxpayers.

President Donald Trump arrives to speak on his policy to end tax on tips in Las Vegas, Nevada, on January 25.

AFP via Getty Images

Key Facts

The “No Tax on Tips” provision passed as part of the megabill that Trump signed into law in July, allowing workers in service professions to deduct up to $25,000 in tips from their federal income taxes, starting with their 2025 tax return and continuing through 2028.

The $25,000 can be taken on top of the standard deduction, which is $15,750 for single filers in 2025, meaning single filers taking the standard deduction and reporting the full $25,000 in tipped income can shave a little over $40,000 off their income for tax purposes.

That amount is lower for people who earn more than $150,000 annually: For each $1,000 that a worker makes over $150,000, the amount of their deduction is reduced by $100.

The legislation says only that the law applies to workers “in an occupation which customarily and regularly received tips on or before December 31, 2024,” but did not specify professions, and the Trump administration has been expected to issue further guidance on who will be eligible for the exemption.

According to a draft occupation list that was first reported by Axios and confirmed by multiple other outlets, the list includes 68 jobs, ranging from typical tip-based service professions like wait staff to more novel professions, like influencers, online streamers and other digital content creators.

The Trump administration has still not confirmed the exact list, and the Treasury Department has not yet responded to a request for comment.

Which Occupations Are Eligible For ‘no Tax On Tips’?

According to the draft list first published by Axios, the list of eligible professions includes the following jobs, which the Treasury Department has divided into eight categories:

Beverage & Food Service: Bartenders, Wait Staff, Food Servers (non-restaurant), Dining Room Attendants, Cafeteria Attendants, Bartender Helpers, Chefs, Cooks, Food Preparation Workers, Fast Food and Counter Workers, Dishwashers, Host Staff (Restaurant, Lounge, and Coffee Shop), Bakers

Entertainment & Events: Gambling Dealers, Gambling Change Persons, Booth Cashiers, Gambling Cage Workers, Gambling and Sports Book Writers and Runners, Dancers, Musicians, Singers, Disc Jockeys (except radio), Entertainers, Performers, Digital Content Creators, Ushers, Lobby Attendants, Ticket Takers, Locker Room, Coatroom and Dressing Room Attendants

Hospitality & Guest Services: Baggage Porters, Bellhops, Concierges, Desk Clerks (Hotel, Motel and Resort), Maids, 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 and Portrait Photographers, Private Event Videographers, Event Officiants, Pet Caretakers, Tutors, Nannies, Babysitters

Personal Appearance & Wellness: Skincare Specialists, Massage Therapists, Barbers, Hairdressers, Hairstylists, Cosmetologists, Shampooers, Manicurists/Pedicurists, Eyebrow Threading and Waxing Technicians, Makeup Artists, Exercise Trainers, Group Fitness Instructors, Tattoo Artists, Piercers, Tailors, Shoe and Leather Workers and Repairers

Recreation & Instruction: Golf Caddies, Self-Enrichment Teachers, Recreational and Tour Pilots, Tour Guides and Escorts, Travel Guides, Sports and Recreation Instructors

Transportation & Delivery: Parking and Valet Attendants, Taxi and Rideshare Drivers, Chauffeurs, Shuttle Drivers, Goods Delivery People, Personal Vehicle and Equipment Cleaners, Private and Charter Bus Drivers, Water Taxi Operators, Charter Boat Workers, Home Movers, Rickshaw, Pedicab, and Carriage Drivers

Big Number

Approximately 4 million. That’s the approximate number of Americans who worked in tipped occupations as of 2023, according to the Budget Lab at Yale University, making up approximately 2.5% of all U.S. employment. It’s unclear how that estimate may be affected by the specific occupations the policy is set to cover. Many of those workers would not benefit from the “No Tax on Tips” policy, however, as the Budget Lab notes approximately 37% of tipped workers in 2022 had incomes that were low enough that they didn’t owe any federal taxes.

How Much Will No Tax On Tips Cost The Government?

Approximately $40 billion through 2028, according to an estimate by the Congressional Budget Office.

What We Don’t Know

There are still some outstanding questions when it comes to how the policy will play out in practice. The law specifies that the tips eligible for deductions only include ones that are “paid voluntarily without any consequence in the event of nonpayment” and are “determined by the payor,” which means it’s unclear if tips like gratuities that are automatically added on for large restaurant parties could be deducted. It’s also still unclear how tipped income will be reported so it can be eligible for the deduction, CNBC notes. While the deduction will apply for workers’ federal returns, they will also still likely have to pay state taxes on their tips in states with income tax.

Key Background

Trump first introduced his “No Tax on Tips” policy on the campaign trail ahead of his election, making the policy one of his key economic proposals along with other policies like sweeping tariffs and eliminating taxes on Social Security payments. The policy proved to be one of Trump’s less controversial proposals, with former Vice President Kamala Harris also endorsing the policy ahead of the election. The Senate then passed a “No Tax on Tips” measure in a unanimous vote in May, which was ultimately integrated into the larger spending bill.