If you make a living on tips, waiting tables, cutting hair, driving rideshare, or even livestreaming, you’ve probably heard some buzz about the One Big Beautiful Bill Act (OBBBA). One of the most talked-about parts of the law is the new “No Tax on Tips” deduction.
Let’s break it down in plain English.
The IRS and Treasury recently published a preliminary list of qualifying occupations. The highly-awaited list includes obvious ones—servers, bartenders, hair stylists—but also surprising ones like podcasters and DJs.
Not every job that gets tips will qualify. Some industries (like law, healthcare, and certain arts professions) are excluded under IRS rules.
A full list can be found here: TIPPED OCCUPATION LIST.
This isn’t a full tax holiday on tips:
Here’s what you can do now to be ready:
1. Keep track of your tips—accurate records matter more than ever.
2. Review Treasury’s Tipped Occupation List to see if your job qualifies.
3. Don’t forget state taxes—your state may not follow this federal rule automatically.
4. Ask your tax pro if the deduction will actually lower your tax bill.
No more back and forth, no more IRS phone tag. TaxNow makes accessing Wage and Income transcripts effortless, with a 10-year lookback so you can retrieve past and present transcripts instantly.The “No Tax on Tips” rule could be a win for millions, but whether it actually saves you money depends on your job, income, and how the IRS defines “tipped occupations.” Keep good records, stay informed, and when in doubt, get advice.
Want to make sure you never miss updates like this? Sign up with TaxNow—we’ll track IRS changes for you, so you can spend less time worrying about taxes and more time keeping your hard-earned tips.
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