# Tipped occupations list: which jobs qualify for the tips deduction

Source: https://taxbracketsdesk.com/new-tax-law/tipped-occupations-list-deduction
Publisher: Tax Brackets Desk (taxbracketsdesk.com), independent editorial site
Topic: New Tax Law Deductions
Last updated: 2026-09-18

> The tipped occupations list is Treasury's catalog of jobs that customarily and regularly received tips on or before December 31, 2024. Only tips earned in one of these jobs can be deducted under no tax on tips. Each job has a three-digit Treasury Tipped Occupation Code, grouped into eight families numbered 100 to 800, and starting with 2026 pay the code appears in W-2 box 14b.

## Key facts

- Who publishes it: Treasury and the IRS, at IRS.gov/TippedOccupations
- Test date: Job customarily tipped on or before December 31, 2024
- Code format: Three-digit TTOC, eight groups (100s to 800s)
- Where the code appears: W-2 box 14b; 1099-NEC box 1c; 1099-MISC box 13b; 1099-K box 1d
- Page last updated by IRS: June 28, 2026

## What makes a tip qualified

Being on the tipped occupations list is necessary but not enough. The payment itself must also be a qualified tip. Under the IRS definition, that is a voluntary amount paid in cash or charged to a card by a customer, including tips you receive through a tip pool or tip-sharing arrangement.

Voluntary means the customer decides whether to pay and how much. If the amount is fixed by the business and the customer must pay it, it is a service charge, and service charges are treated as regular wages rather than tips.

## Occupation groups on the Treasury tipped occupation code list

Treasury sorts qualifying jobs into eight families. The first digit of the code tells you the family, and the last two digits identify the job. The first three families are shown code by code below; the rest are summarized with example jobs.

| Code | Occupation | Code | Occupation |
| --- | --- | --- | --- |
| 101 | Bartenders | 201 | Gambling dealers |
| 102 | Wait staff | 202 | Gambling change persons and booth cashiers |
| 103 | Food or beverage servers, non-restaurant | 203 | Gambling cage workers |
| 104 | Dining room and cafeteria attendants and bartender helpers | 204 | Gambling and sports book writers and runners |
| 105 | Chefs and cooks | 205 | Dancers |
| 106 | Food preparation workers | 206 | Musicians and singers |
| 107 | Fast food and counter workers | 207 | Disc jockeys, except radio |
| 108 | Dishwashers | 208 | Entertainers and performers |
| 109 | Host staff, restaurant, lounge and coffee shop | 209 | Digital content creators |
| 110 | Bakers | 210 | Ushers, lobby attendants and ticket takers |
|  |  | 211 | Locker room, coatroom and dressing room attendants |

Beverage and Food Service (100s) and Entertainment and Events (200s)

The Hospitality and Guest Services family is short: 301 baggage porters and bellhops, 302 concierges, 303 hotel, motel and resort desk clerks, and 304 maids and housekeeping cleaners.

| Code range | Group | Example jobs |
| --- | --- | --- |
| 401 to 409 | Home Services | Handymen, electricians, plumbers, HVAC and appliance repair, landscapers, home cleaners, locksmiths, movers, roadside assistance |
| 501 to 510 | Personal Services | Care workers, nannies, tutors, pet caretakers, event planners, photographers, videographers, officiants, floral designers |
| 601 to 611 | Personal Appearance and Wellness | Barbers, hairstylists, nail technicians, skincare and makeup artists, massage therapists, fitness trainers, tattoo artists, tailors |
| 701 to 706 | Recreation and Instruction | Golf caddies, tour and activity guides, sports and recreation instructors, pilots |
| 801 to 810 | Transportation and Delivery | Taxi and ride-hail drivers, delivery drivers, valet attendants, bus drivers, vehicle cleaners |

Tipped occupation codes list, 400 to 800 series (examples)

Check the exact title and code at IRS.gov/TippedOccupations before filing, because your employer's job title may not match Treasury's wording. The test is the work you actually do, not what your badge says.

## Which jobs qualify for no tax on tips, and which tips do not

Even in a listed job, some money you receive from customers will not count. Leave these out of the Schedule 1-A figure but still report them as income.

- **Automatic gratuities and service charges.** An 18% charge added to every large-party bill, or a fixed delivery fee, is set by the business, so it is wages, not a tip.
- **Noncash tips.** Event tickets, gift items or other goods are not cash or charged tips, even though their value is taxable income.
- **Tips in an unlisted job.** A worker whose occupation was not customarily tipped before 2025 cannot deduct tips, even occasional ones.
- **Tips in a specified service trade or business.** Fields such as health, law, accounting, consulting, athletics and performing arts are excluded. A self-employed musician or entertainer may be on the list yet still barred for this reason.
- **Tips above your net profit.** Self-employed workers cannot deduct more than the net profit from the business that earned the tips.

> **Two jobs, one limit:** If you earn tips in two listed jobs, the tips from both are added together, and the $25,000 cap still applies to the whole return. The Schedule 1-A instructions explain how to report more than one occupation.

## Where the tipped occupation code appears on your W-2 or 1099

Starting with 2026 pay, employers and payers must show both the qualified tip amount and the code. The amount sits in one box and the code in another, so check that both are filled.

| Form | Tip amount box | Occupation code box |
| --- | --- | --- |
| W-2 | Box 12, code TP | Box 14b |
| 1099-NEC | Box 1b | Box 1c |
| 1099-MISC | Box 13a | Box 13b |
| 1099-K | Box 1c | Box 1d |

Tip amount and occupation code boxes on 2026 forms

### What to do if the code is missing or wrong

1. Compare the code with the list at IRS.gov/TippedOccupations and with the work you did.
2. Ask the employer or payer for a corrected form (Form W-2c for wages) if the code or amount is wrong.
3. Keep your daily tip records and any Form 4070 reports you gave your employer as backup.
4. If a correction does not arrive before you file, figure the deduction from your own records and keep the documents with your return.

The amount rules, phaseout and a worked example are in [no tax on tips](https://taxbracketsdesk.com/new-tax-law/no-tax-on-tips-deduction). Hourly workers who also earn overtime can read [no tax on overtime](https://taxbracketsdesk.com/new-tax-law/no-tax-on-overtime-deduction), and the [One Big Beautiful Bill tax changes](https://taxbracketsdesk.com/new-tax-law) hub lists every new deduction.

## Common questions

### Which jobs qualify for no tax on tips?

Jobs on Treasury's tipped occupations list, which covers eight groups: beverage and food service, entertainment and events, hospitality, home services, personal services, personal appearance and wellness, recreation and instruction, and transportation and delivery.

### What is a Treasury Tipped Occupation Code?

It is a three-digit code, such as 101 for bartenders or 102 for wait staff, that identifies the job in which tips were earned. From 2026 it appears in W-2 box 14b.

### Do service charges count as tips for the deduction?

No. A mandatory charge set by the business, such as an automatic gratuity on large parties, is not voluntary, so it is treated as wages rather than a qualified tip.

### Are digital content creators on the tipped occupations list?

Yes. Digital content creators are listed under code 209 in the entertainment and events group, but the tips must still be voluntary and not earned in an excluded service business.

### Do cooks and dishwashers qualify for the tips deduction?

Yes, if they receive tips through a tip pool or sharing arrangement. Chefs and cooks are code 105 and dishwashers are code 108.

## Sources

- [Occupations that customarily and regularly received tips](https://www.irs.gov/TippedOccupations)
- [Publication 505 (2026), Tax Withholding and Estimated Tax](https://www.irs.gov/pub/irs-pdf/p505.pdf)
- [One Big Beautiful Bill provisions: individuals and workers](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions-individuals-and-workers)
- [One Big Beautiful Bill Act: tax deductions for working Americans and seniors](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors)