KEY TAKEAWAYS:

Treasury outlines which tipped occupations qualify for the “ no tax on tips ” benefit.

Tip must be voluntary and reported to employers to qualify; mandatory tips excluded.

Deduction allows up to $25,000 in qualified tips per year for 2025–2028.

Estimated 4 million U.S. workers in tipped jobs may benefit, with deficit impact of $32–40 billion.

The Treasury Department is moving closer to making President Donald Trump’s “no tax on tips” promise a reality. But new guidance released Friday tends to limit the number of tipped workers who will be able to claim the benefit.

The agency on Friday submitted proposed regulations to the Federal Register that includes greater detail on the occupations covered by the rule and who will qualify and what counts as a “qualified t

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