President Trump delivers on his campaign promise as the Treasury Department officially releases the comprehensive list of over 60 jobs eligible for the groundbreaking “no tax on tips” deduction, providing immediate financial relief to millions of hardworking Americans in service industries.
Story Highlights
- Treasury Department releases official list covering eight industry categories and over 60 tipped positions
- Workers can deduct up to $25,000 annually in tips from federal income taxes through 2028
- Policy extends beyond restaurants to include beauty services, entertainment, and hospitality workers
- IRS updating tax forms and withholding procedures to implement Trump’s campaign promise
Trump Fulfills Major Campaign Promise
President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, delivering on his key 2024 campaign pledge to eliminate federal income taxes on tips. The Treasury Department has now released the official list of eligible occupations, covering eight industry categories including food service, entertainment, hospitality, and personal services. This represents the first federal law to broadly exempt tips from income taxation, providing tangible relief to working Americans who depend on gratuities for their livelihood.
Comprehensive Coverage Across Service Industries
The Treasury’s official guidance identifies more than 60 specific job titles eligible for the deduction, extending far beyond traditional restaurant workers. Bartenders, wait staff, hotel food servers, hairdressers, nail technicians, casino dealers, and entertainment venue workers all qualify for the tax relief. The policy also expands FICA tip credit eligibility to beauty service businesses, providing additional payroll tax benefits to salons and spas that previously weren’t covered under federal tip provisions.
Capped Benefits Target Working Families
The deduction is structured with a $25,000 annual cap and phases out for higher earners, ensuring benefits primarily reach middle-class and working families rather than high-income earners. Both employees and independent contractors in eligible industries can claim the deduction for tax years 2025 through 2028, with potential Congressional extension possible. The IRS is currently updating W-2 and 1099 reporting requirements to accommodate the new tax treatment, with detailed implementation guidance pending.
Economic Impact and Future Implications
This policy directly addresses the financial challenges facing service industry workers who have struggled with wage stagnation and economic uncertainty. By allowing workers to keep more of their earned tips, the law provides immediate disposable income increases that will likely stimulate consumer spending in affected sectors. The measure represents a significant departure from decades of federal tax policy and demonstrates the Trump administration’s commitment to supporting the working Americans who drive our service economy through their dedication and hard work.
Treasury Department releases official list of jobs eligible for 'no tax on tips' deductionhttps://t.co/A8FXQyAccu
— Karoline Leavitt (@PressSec) September 3, 2025
Critics from left-leaning organizations have attempted to downplay the benefits, but the reality remains that millions of tipped workers will see immediate financial relief. This represents exactly the kind of practical, pro-worker policy that resonates with Americans tired of government overreach into their paychecks.
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How Does No Tax on Tips Work in the One Big Beautiful Bill
Treasury Department releases official list jobs eligible no tax tips deduction
It’s Official: No Tax on Tips, No Tax on Overtime Through 2028
The One Big Beautiful Bill Section by Section
