Which jobs count as tipped occupations

The 2026 tips deduction is limited to qualified tips in occupations that customarily and regularly received tips on or before December 31, 2024. That test keeps the deduction focused on genuinely tipped work rather than any job where a customer might occasionally leave something extra.

Occupations that generally qualify

The core group is food service and hospitality: servers, bartenders, baristas, bussers, and hosts who share in tips. It also covers many personal and delivery services where tipping has long been customary, such as hairstylists, barbers, nail technicians, estheticians, food and grocery delivery drivers, taxi and rideshare drivers, hotel housekeeping and bell staff, and similar roles. The unifying feature is a longstanding custom of voluntary customer tipping in that line of work.

Tips versus service charges

The deduction covers voluntary tips, meaning amounts the customer chooses to give and in what amount. A mandatory service charge or automatic gratuity that the business adds to the bill is generally treated as wages, not a tip, even if it is later paid out to staff. If your pay records separate voluntary tips from service charges, the voluntary tips are the figure that feeds this deduction.

How tips can reach you

Qualified tips can be cash left directly, charged tips added to a card payment and paid out by the employer, or tips distributed through a valid tip pool among staff who customarily receive them. What matters is that they are voluntary customer tips in a tipped occupation, properly reported.

When in doubt

Eligibility can be fact-specific, especially for newer service categories or mixed roles. Use this guide to understand the general boundary, then rely on official guidance and, where needed, a tax professional for your situation. This page is general information, not tax advice.