A major tax change has just taken effect in the United States. Under the new law signed on July 4 by President Donald Trump, the Department of Labor released a list of 68 jobs or occupations that will be exempt from federal taxes on tips. This benefit, though temporary, could provide economic relief for millions of workers, particularly in sectors like hospitality, entertainment, and personal services.
- However, not everyone will qualify automatically. The law includes key restrictions:
- 1. Food and Beverage Services
- 2. Entertainment and Events
- 3. Hospitality and Guest Services
- 4. Home Services
- 5. Personal Services
- 6. Personal Appearance and Wellness
- 7. Recreation and Education
- 8. Transportation and Delivery
The provision, part of a tax package backed by Republican lawmakers, states that workers in the listed jobs can avoid paying federal taxes on their tip income. According to the White House, this could represent annual savings of up to $1,300 per person.
However, not everyone will qualify automatically. The law includes key restrictions:
- Only those working in occupations listed by the Treasury Department will be eligible.
- Annual income must be less than $150,000 per person, or $300,000 for joint filers.
- The maximum exempt tip amount is $25,000 per year.
- This benefit will remain in effect until the end of fiscal year 2028.
- Some included jobs are surprising
While many positions are traditional tip-based jobs, such as waiters, bartenders, or hairstylists, the list also includes less conventional occupations in this context, like plumbers, electricians, and air conditioning repair technicians.
The measure has been well received, especially by the hospitality industry.
“Those in the hospitality industry will be the big winners with this new policy,” commented the law firm Fisher Phillips in a blog post published on September 2.
Below, we share the complete list of the 68 jobs the Treasury Department considers eligible for this exemption:
1. Food and Beverage Services
- Bartenders (mixologists, sommeliers)
- Waiters and servers (cocktail servers, dining assistants)
- Off-site food service staff (room service, beverage carts)
- Dining and bar assistants (bussers, bar backs)
- Chefs and cooks (executive chefs, sous-chefs)
- Food preparers (salad makers, sandwich assemblers)
- Fast food and counter workers (baristas, ice cream vendors)
- Dishwashers and kitchen assistants
- Hosts (maître d’s, lounge receptionists)
- Bakers (pastry chefs, cake decorators)
2. Entertainment and Events
- Dealers (blackjack, poker)
- Cashiers and gaming assistants (slot attendants, casino cashiers)
- Betting writers and runners (bingo callers, ticket runners)
- Dancers (club, cabaret)
- Musicians and singers (lounge, instrumentalists)
- Disc jockeys (weddings, nightclubs)
- Artists and entertainers (comedians, magicians)
- Digital content creators (streamers, influencers)
- Ushers and ticket takers (theaters, concerts)
- Coat check and dressing room attendants
3. Hospitality and Guest Services
- Bellhops and luggage porters (hotels, cruise ships)
- Concierges (hotels, resorts)
- Hotel or resort receptionists
- Housekeeping and hotel maids
4. Home Services
- Home maintenance workers (painters, roofers)
- Gardeners and landscapers
- Electricians (lighting installers, wiring)
- Plumbers (faucet installers, pipefitters)
- Heating and air conditioning technicians
- Appliance installers and repairers
- Household cleaning staff (cleaners, window washers)
- Locksmiths (key makers, safe installers)
- Roadside assistants (tow truck operators, tire repair)
5. Personal Services
- Attendants and service staff (valets, butlers)
- Private event organizers (weddings, parties)
- Photographers (weddings, portraits)
- Videographers (events, weddings)
- Ceremony officiants (clergy, wedding officiants)
- Pet caregivers (dog walkers, groomers)
- Tutors (languages, math)
- Nannies and caregivers (au pairs, childcare workers)
6. Personal Appearance and Wellness
- Skin care specialists (estheticians, facialists)
- Massage therapists (sports, therapeutic)
- Hairdressers and hairstylists
- Salon assistants (shampooers, apprentices)
- Manicurists and pedicurists
- Waxing and eyebrow technicians
- Makeup artists (bridal, theater)
- Fitness instructors (personal trainers, yoga instructors)
- Tattoo artists and piercers
- Tailors (seamstresses, alteration specialists)
- Leather and shoe workers (cobblers, shoeshiners)
7. Recreation and Education
- Golf caddies
- Personal enrichment instructors (art, dance)
- Recreational and tour pilots (hot air balloons, sightseeing flights)
- Tour guides and companions (museums, cities)
- Travel guides (cruise directors, expedition leaders)
- Sports and recreation instructors (skiing, surfing)
8. Transportation and Delivery
- Valets and parking attendants
- Taxi and rideshare drivers (Uber, Lyft)
- Shuttle drivers (airport, hotel)
- Delivery workers (pizza, grocery)
- Vehicle and equipment cleaners (cars, boats)
- Bus drivers (tours, charter)
- Water taxi and tour boat operators
- Bike taxi and carriage drivers
- Movers (loaders, packers)
The list is not yet final, as it must be published in the Federal Register to be official. However, the Treasury Department indicated that the preliminary list will be “substantially the same” as the final version.
If you work in one of these occupations, it’s important to consult with a tax advisor to determine if you qualify and how to take advantage of this deduction before it expires in 2028.
Image: Opinion
