On September 2, 2025, the U.S. Department of Treasury released a Preliminary Tipped Occupations List that provides employers with a sneak peek regarding which positions may qualify for “no tax on tips” under the One Big Beautiful Bill Act (OBBBA).
As previously shared, under the OBBBA, employers are required to report the total amount of qualified tips, qualified tipped position, and qualified overtime for applicable employees. With respect to “no tax on tips,” under the OBBBA, only individuals working in positions that “customarily and regularly received tips” prior to December 31, 2024 qualify for this tax deduction.
The list includes many expected positions, such as wait staff and food servers, as well as some that may be surprising. For example, chefs, cooks, and dishwashers are included in this list, which is different than guidance from the U.S. Department of Labor stating that cooks and dishwashers are traditionally non-tipped employees. Affected employers are encouraged to review this list to identify potentially qualifying occupations.
Listed below are the industries included in the list:
- Beverage & Food Service
- Entertainment & Events
- Hospitality & Guest Services
- Home Services
- Personal Services
- Personal Appearance & Wellness
- Recreation & Instruction
- Transportation & Delivery
The list will be published in the Federal Register and open to public comment. Additional information is available at the Department of Treasury’s website. HEC will continue to monitor guidance and provide updates as appropriate.
Please note the information provided is for informational purposes only and may not reflect the most current regulatory developments. We strive to keep our materials up to date, but there may be occasions when information becomes outdated. Users are encouraged to verify the applicability of the content before relying on it for decision-making. If you have any questions or concerns regarding the accuracy or relevance of the information, please contact us directly for assistance.