Understanding The New OBBB Act Tipped Occupations List
If you work in an industry where tips are a regular part of your income, there’s big news for you. Under the new OBBB Act, a special tax deduction will be available for certain tipped occupations — but only if your job is on the official list released by the U.S. Treasury and IRS.
This list, which will become part of future regulations, identifies jobs that traditionally and consistently receive tips before December 31, 2024. Only those roles will qualify for the new tax benefit.
Which Jobs Are Included?
The preliminary list mainly covers service industry positions and other roles where tips are a standard part of compensation. Examples include:
- Waiters and servers
- Bartenders and baristas
- Valet attendants and hotel concierges
- Tour guides and cruise staff
- Hair stylists, barbers, and spa workers
- Golf caddies and private club staff
- Limo and shuttle drivers
- Busboys, runners, and barbacks
The Treasury expects the final version of the list to remain largely unchanged.
Which Jobs Are Excluded?
Even if tips are received, the deduction does not apply to jobs in the following industries:
- Healthcare
- Performing arts
- Professional sports
- Further guidance will be issued to clarify these exclusions.
What’s Next?
The official list will be published in the Federal Register and open for public comment.
Employers and workers will be able to verify if their occupation qualifies before applying for the deduction.
This benefit applies temporarily for tax years 2025–2028.
Why It Matters?
For millions of workers in the service sector, this new rule could mean significant tax savings. But eligibility depends entirely on whether your job is included in the IRS-approved list.
Pro tip: Now is the time to confirm how your occupation is classified so you don’t miss out on this valuable deduction when it becomes available.