Trump’s $25,000 ‘No Tax On Tips’ Deduction Covers Bartenders, Babysitters And 66 More Jobs – Financial Freedom Countdown

President Donald Trump’s “big beautiful bill” has made waves with a new tax break: a “no tax on tips” deduction worth up to $25,000 per year.

The U.S. Treasury has now released a preliminary list of 68 jobs that may qualify.

The deduction runs from 2025 through 2028 and could reshape the financial outlook for millions of service workers.

But it also comes with strict limits, phase-outs, and unanswered questions.

Trump Floated the Idea First And Harris Copied It Later

During the 2024 campaign, Trump surprised both parties by promising “no tax on tips” as part of his middle-class relief pitch. The idea instantly caught fire among service industry workers.

Vice President Kamala Harris tried to roll out a similar plan during her campaign stops, but voters largely saw it as a copycat move.

By the time Harris adopted it, Trump had already branded the idea as his own, and polls showed the public credited him for it.

Why the $25,000 Deduction Matters

Tips are the primary income stream for millions of Americans from bartenders and caddies to nannies and delivery drivers. Under previous law, every dollar was taxable.

Now, with Trump’s change, workers can deduct up to $25,000 in “qualified tips” each year.

For someone earning $40,000 in wages and $20,000 in tips, taxable income drops to $35,000 instead of $60,000; a huge cut.

Bartenders, Wait Staff, and Restaurant Workers

Unsurprisingly, the Treasury list is packed with restaurant and bar jobs, including:

Bartenders
Wait staff
Food servers outside restaurants
Dining room attendants and helpers
Chefs, cooks, bakers, and dishwashers
Fast food and counter workers
Hosts and hostesses
This group makes up the largest share of tipped workers in the U.S.

Babysitters and Nannies Make the Cut

Notably, the list includes in-home caregivers such as babysitters and nannies. That’s a big shift, since many childcare workers operate in the informal economy where tip income often goes underreported.

Casino Dealers, Dancers, and Performers

Entertainment venues are also well represented. Covered occupations include:

Casino dealers, cage workers, and sports book writers
Dancers and musicians
DJs and other performers
Ushers and ticket takers
Digital content creators who receive direct tips

Beauty, Wellness, and Fitness Professionals

Workers in salons, spas, and fitness centers also qualify, such as:

Hairdressers and barbers
Massage therapists
Manicurists and pedicurists
Makeup artists and skincare specialists
Tattoo artists and piercers
Fitness instructors and trainers

Tour Guides, Caddies, and Sports Instructors

Jobs tied to recreation and tourism round out the list, including:

Golf caddies
Recreational pilots and tour escorts
Travel guides
Sports and recreation instructors
Self-enrichment teachers

Taxi, Valet, and Delivery Drivers

Transportation workers who rely heavily on gratuities also benefit. Among them:

Rideshare and taxi drivers
Valet attendants
Shuttle and charter bus drivers
Water taxi operators
Goods delivery workers
Pedicab, carriage, and rickshaw drivers

Bellhops, Concierges, and Housekeepers

The hotel and lodging industry, another tip-heavy sector, is included too:

Baggage porters and bellhops
Concierges
Hotel desk clerks
Maids and housekeeping staff

Event Planners, Photographers, and Tutors

Less obvious occupations also appear on Treasury’s list, such as:

Event planners and officiants
Private photographers and videographers
Pet caretakers
Tutors, babysitters, and nannies
This wide scope shows the deduction reaches far beyond restaurants.

Who Gets Left Out?

While the list is long, not everyone qualifies. The deduction only covers jobs that “customarily and regularly received tips” before December 31, 2024.

That leaves out new gig app roles and hybrid service jobs that have sprung up since.

It also phases out completely for workers with incomes above $150,000, meaning high-end consultants, celebrity trainers, or luxury service providers could miss out.

And importantly, workers will still owe Social Security, Medicare, and state taxes on tip income; the federal break doesn’t erase those obligations.

What Counts as a Tip?

The law defines tips as voluntary payments from customers; not automatic service charges.

That distinction could leave some hospitality workers, particularly in resorts and event venues, on uncertain ground until the IRS issues guidance.

The Timeline for Final Rules

Treasury’s preliminary list came just before the October 2 deadline set in Trump’s bill. Officials have not provided a final publication date, but they expect the final list to be “substantially the same” as the draft.

The Bottom Line

Trump’s “no tax on tips” deduction has the potential to reshape life for service workers across dozens of industries.

Bartenders, babysitters, dancers, caddies, and many more now stand to keep thousands in their pockets.

But with income phase-outs, lingering uncertainty, and state taxes still in play, the real-world impact may vary widely.

One thing is clear: Trump floated the idea, voters embraced it, and now the U.S. tax code is about to reflect it.

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