Buried within President Donald Trump’s recently passed “One Big Beautiful Bill” lies a policy Trump himself vowed to enact during his 2024 presidential campaign, and one that could significantly impact the wallets of millions of Americans.
Trump’s “no tax on tips” policy will soon roll out, a policy that became very popular with workers from both sides of the political aisle during last year’s election.
As stipulated in Trump’s “One Big Beautiful Bill”, the “no tax on tips” policy allows tipped workers to deduct gratuity earnings from their federal taxable income, up to $25,000 annually.
The deduction phases out for individuals earning more than $150,000 and couples earning over $300,000.
It applies to tax years 2025 through 2028 and does not eliminate payroll taxes for Social Security and Medicare, nor does it affect state or local tax obligations.
In other words, for many workers who rely on tips for their income, they will see a significant reduction in overall taxes.
At the time of the passing of Trump’s “One Big Beautiful Bill”, it was not clear which professions would qualify for the tax cut.
Until now.
Treasury Secretary Scott Bessent, who made a Labor Day swing of three Washington D.C.-area restaurants to promote the “no tax on tips” policy, told Axios the list of covered jobs is “expansive but fair.”
“What we don’t want is people to game the system. We want it to be hardworking Americans who depend on tips,” he said during an interview at McLean Family Restaurant in suburban Virginia yesterday.
“Their first $25,000 is tax-free, and that’s going to cover a huge number of American workers.”
“For workers, $20 here and $20 there can make a big difference,” Bessent added.
🇺🇸SEC. BESSENT PUSHES ‘NO TAX ON TIPS’ WITH DINER SURPRISE
Treasury Secretary Scott Bessent walked into Metro 29 Diner in Virginia on Labor Day, ordered an omelet, and left more than breakfast behind. He tipped 22 percent, scribbling “No Tax on Tips” on his receipt to spotlight… https://t.co/gvbiEWZowm pic.twitter.com/qIp868vzew
— Mario Nawfal (@MarioNawfal) September 2, 2025
The Federal Register will begin publishing the full list under regulations proposed by the Treasury and IRS.
In the meantime, here is the initial list of jobs impacted, which the Treasury broke into eight categories, according to the Axios report:
Beverage & food service
- Bartenders
- Wait Staff
- Food Servers, Non-restaurant
- Dining Room and Cafeteria Attendants and Bartender Helpers
- Chefs and Cooks
- Food Preparation Workers
- Fast Food and Counter Workers
- Dishwashers
- Host Staff, Restaurant, Lounge, and Coffee Shop
- Bakers
2. Entertainment & events
- Gambling Dealers
- Gambling Change Persons and Booth Cashiers
- Gambling Cage Workers
- Gambling and Sports Book Writers and Runners
- Dancers
- Musicians and Singers
- Disc Jockeys (except radio)
- Entertainers & performers
- Digital Content Creators
- Ushers, Lobby Attendants, and Ticket Takers
- Locker Room, Coatroom and Dressing Room Attendants
3. Hospitality & guest services
- Baggage Porters and Bellhops
- Concierges
- Hotel, Motel and Resort Desk Clerks
- Maids and Housekeeping Cleaners
4. 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
5. Personal services
- Personal Care and Service Workers
- Private Event Planners
- Private Event and Portrait Photographers
- Private Event Videographers
- Event Officiants
- Pet Caretakers
- Tutors
- Nannies and Babysitters
6. Personal appearance & wellness
- Skincare Specialists
- Massage Therapists
- Barbers, Hairdressers, Hairstylists, and Cosmetologists
- Shampooers
- Manicurists and Pedicurists
- Eyebrow Threading and Waxing Technicians
- Makeup Artists
- Exercise Trainers and Group Fitness Instructors
- Tattoo Artists and Piercers
- Tailors
- Shoe and Leather Workers and Repairers
7. Recreation & instruction
- Golf Caddies
- Self-Enrichment Teachers
- Recreational and Tour Pilots
- Tour Guides and Escorts
- Travel Guides
- Sports and Recreation Instructors
8. Transportation & delivery
- Parking and Valet Attendants
- Taxi and Rideshare Drivers and Chauffeurs
- Shuttle Drivers
- Goods Delivery People
- Personal Vehicle and Equipment Cleaners
- Private and Charter Bus Drivers
- Water Taxi Operators and Charter Boat Workers
- Rickshaw, Pedicab, and Carriage Drivers
- Home Movers