IRS Preliminary List of Tipped Professions: Early Guidance Under OBBBA
The Internal Revenue Service has released its preliminary list of tipped professions for purposes of the new “no tax on tips” provision under the One Big Beautiful Bill Act (OBBBA). While the list will be finalized through proposed regulations and public comment, Treasury and the Internal Revenue Service expect the final version to closely resemble this preliminary draft.
The objective of the list is to define occupations where tips were customarily and regularly received on or before December 31, 2024. Under OBBBA, qualifying tip income in these occupations may now be excluded from taxable income, provided that the work is not performed in excluded industries such as health, athletics, or the performing arts.
The Expected Occupations
Many of the listed professions are consistent with long standing tipping practices. Bartenders, wait staff, bussers, baristas, concierges, bellhops, and hotel housekeepers all appear on the list. These roles have historically relied on tipping as a meaningful component of compensation, so their inclusion is expected.
The Expanding Scope of Tipped Work
What is notable is the breadth of occupations identified. The Internal Revenue Service has recognized tipping across home services, personal care, and transportation:
Home services: Landscapers, locksmiths, heating and cooling technicians, appliance repairers, and roadside assistance workers.
Personal appearance and wellness: Hairdressers, massage therapists, tattoo artists, and skincare specialists.
Transportation and delivery: Rideshare drivers, pizza delivery workers, golf caddies, and pedicab drivers.
Emerging and Unexpected Professions
The preliminary list also acknowledges newer or less traditional tipping environments. Digital content creators including streamers, online video personalities, and podcasters are included. Event professionals such as wedding officiants, private event planners, and portrait photographers are also recognized.
These inclusions suggest that the Internal Revenue Service is interpreting customary tipping in a broader cultural sense, reflecting how digital platforms and private event industries have normalized direct payments that function in the same way as tips.
Practical Implications
Although the list remains preliminary, it provides useful direction for both workers and businesses. For employees in covered occupations, tips received may be excludable from income under OBBBA, which may significantly reduce taxable wages. Employers should anticipate additional Internal Revenue Service guidance clarifying compliance and reporting obligations.
Because carve outs apply, particularly for health, athletics, and certain performing arts roles, careful review of the final regulations will be necessary before making tax reporting changes.
Conclusion
The preliminary tipped professions list illustrates the widespread nature of tipping across the United States economy. From restaurant servers to locksmiths, wedding officiants, and digital influencers, the scope is broader than many expected. As formal regulations are released, workers and employers in these industries should be prepared to adjust their tax planning to take full advantage of the OBBBA exclusion.
If you are in one of these professions, or if you employ individuals who are, now is the time to begin planning for how this change may affect your reporting and withholding requirements. For question on how this may impact you or your employees, contact me for a consultation.
