Which jobs qualify for the No Tax on Tips deduction?

🇺🇸 US rulesVerified September 23, 2026

The short answer

You generally qualify only if you receive qualified tips in an occupation the IRS lists as one that customarily and regularly received tips on or before Dec. 31, 2024. The official list, with Treasury Tipped Occupation Codes, is at IRS.gov/TippedOccupations: wait staff, bartenders, baristas and counter workers, many hospitality and personal-service roles, and others. You must also report tips properly and have a valid SSN; married filers must file jointly. Being tipped isn’t enough if your occupation isn’t listed.

Example math

Two coworkers each receive $8,000 in voluntary card tips:

  1. Alex, a restaurant server (the list includes Wait staff, Treasury Tipped Occupation Code 102) → tips may be eligible if reported and other rules are met.
  2. Blair, an office coordinator who occasionally gets holiday cash from clients, in an occupation not on the tipped list → those amounts generally don’t get the qualified tips deduction, even if they’re casually called “tips.”

Same dollars, different eligibility.

Not tax advice. Check the current IRS list for your role; employers may also report an occupation code on your W-2.

Check your estimate

Answer “occupation on the IRS list?” carefully. Choosing “no” correctly beats an inflated estimate.

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Plain English

Where to look

You don’t need to memorize the whole table. Start here: IRS.gov/TippedOccupations.

Examples commonly relevant to TipMax users (illustrative; always confirm on the live IRS table):

  • 101 Bartenders
  • 102 Wait staff
  • 107 Fast food and counter workers (illustrative examples include barista)
  • 104 Dining room attendants and bartender helpers (bussers, barbacks)

This page is not the legal list. The IRS table controls.

Other gates besides the job title

  • Reporting: tips must be reported on a W-2 or 1099 variant, or on Form 4137.
  • Tips must be voluntary cash tips (service charges are out). See qualified tips vs service charges.
  • A valid SSN, and a joint return if married.
  • The $25,000 cap and MAGI phase-out still apply even if your job qualifies. See the cap and phase-out page.
  • Self-employed: extra limits apply (a net-income limit, and specified service trade or business (SSTB) rules with transition relief). The TipMax calculator doesn’t compute these; see the IRS tip page and self-employed tips and the deduction.

Still being verified: When the SSTB transition relief for self-employed workers ends

What your W-2 may show (2026)

IRS materials describe cash tips in box 12 code TP and the Treasury Tipped Occupation Code in box 14b for 2026 reporting. 2025 had transition relief (Notice 2025-69; also Notice 2025-62 for payors). See W-2 box 12 code TP explained.

Common mistakes

  • Assuming “I get tips” means an automatic deduction.
  • Using an old blog list instead of IRS.gov/TippedOccupations.
  • Ignoring that tip-outs may belong to another worker’s occupation path.

Official sources

Last verified:

Sources checked: the IRS tipped occupations table, the IRS tip recordkeeping page, and the 2026 Form W-2 instructions. Confirmed: the table includes codes 101, 102, 104, and 107 (barista under 107); W-2 code TP and box 14b apply for 2026.

Still open: The IRS may edit the occupations table after our check, and the end date of SSTB transition relief for self-employed workers is still unsettled.

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TipMax Answers explains public IRS guidance in plain English for tipped workers. It is not tax, legal, or accounting advice. Rules can change. Confirm figures on IRS.gov and with a qualified tax professional before you file. TipMax the app helps you track tips and true hourly pay; it does not file your taxes. The IRS occupations list controls, not TipMax.