Workers in dozens of job categories — including waiters, cosmetologists, golf caddies, event DJs and dancers — won’t have to pay taxes on the tips they earn, according to a White House list published on Tuesday.
President Donald Trump’s tax law earlier this year established a break for tipped workers as part of Republicans’ tax-and-spending cut legislation. The list, published on X, will likely also need to be formalized by the Treasury Department and Internal Revenue Service, which write and implement federal tax regulations.
The list of exempted jobs spans a range of industries, including food and beverage, hospitality, transportation and delivery, beauty, tourism, recreation and gambling — addressing a pivotal point of confusion ahead of tax filing season.
The list also includes some amorphous job categories such as “digital content creators,” “home maintenance and repair workers” and “self-enrichment teachers” that are less associated with common tipping practices and could create an opportunity for workers to game the system by categorizing more of their income as tips, rather than wages, to reduce their tax bills.
Trump’s “no taxes on tips” pledge was at the centerpiece of his economic message during the campaign and was a key priority for him as Republicans negotiated the tax bill earlier this year. Trump, who said he got the idea from a Las Vegas waitress, has been at the center of the GOP’s efforts to pitch the “One Big Beautiful Bill” as a boon for middle- and low-income taxpayers. The law also made deep cuts to social safety net programs, including nutrition benefits and Medicaid health coverage, to offset the cost of the cuts.
Trump’s no-taxes-on-tips idea has proved popular among politicians of both parties, with Democrats rolling out rival proposals that also would raise the minimum wage for tipped workers.
Eligible workers can deduct as much as $25,000 in tips from their tax bills when they file their taxes early next year, whether or not they itemize deductions. The tax break expires at the end of 2028, near the end of Trump’s term. It’s expected to cost $32 billion in forgone tax revenues over the next decade, according to the Joint Committee on Taxation.
The IRS earlier said it will provide transition relief for taxpayers subject to the new reporting requirements for tax year 2025.
The law also raises questions over whether exempt income includes tips paid through online payment apps or only those paid in cash or credit.
Former IRS commissioner and longtime leader Doug O’Donnell said earlier this year that implementing tax law changes where certain types of income aren’t being taxed is expected to be a challenge for the agency.
