US Treasury Releases Preliminary List of No-Tax Tip Jobs Including 68 Occupations

President Donald Trump signed a tax bill in July 2025 that eliminates federal income taxes on up to $25,000 of qualified tip income from 2025 through 2028 for workers in occupations that customarily and regularly receive tips. The IRS released a preliminary list of 68 occupations eligible for this "No Tax on Tips" deduction, which includes traditional tipped roles like bartenders and waiters, as well as unexpected jobs such as plumbers, electricians, podcasters, and social media influencers. The deduction phases out for individuals with modified adjusted gross income above $150,000, or $300,000 for married couples filing jointly. States like Wisconsin are moving to align with the federal policy, proposing legislation to end state income taxes on qualified tips. While the tax break could benefit roughly four million workers, experts note only about 3% of taxpayers might see a tangible benefit due to most taking the standard deduction, and many tipped workers already earn below taxable thresholds. The IRS will finalize the list by October 2025 and has introduced a new draft Form W-2 to implement these changes.