IRS Releases List of Tipped Occupations Under OBBBA

The U.S. Department of the Treasury and IRS have issued proposed regulations identifying nearly 70 “customarily tipped” occupations eligible under the OBBBA’s “no tax on tips” provision. Occupations are grouped into eight broad categories:

• 100s – Beverage and Food Service
• 200s – Entertainment and Events
• 300s – Hospitality and Guest Services
• 400s – Home Services
• 500s – Personal Services
• 600s – Personal Appearance and Wellness
• 700s – Recreation and Instruction
• 800s – Transportation and Delivery

Read the full proposed regulations and instructions for submitting comments here: Regulations.gov – Tipped Occupations Proposed Rule

Qualified vs. Not Qualified Tips
Include: Cash, checks, credit/debit card tips, mobile payment app tips, and pooled tip distributions.
Exclude: Mandatory service charges (e.g., automatic 18% restaurant fee), non-voluntary payments, or amounts tied to illegal activity.

Public comments close October 22, 2025, at 11:59 PM EDT. Don’t miss the chance to provide input.