Why there is a list at all
The law limits the tips deduction to occupations that customarily and regularly received tips on or before 31 December 2024. That wording exists to stop employers from reclassifying ordinary wages as tips to dodge tax. Treasury turned it into a concrete list and gave every occupation a three-digit Treasury Tipped Occupation Code, or TTOC.
If your job is not on this list, your tips are not deductible — even if customers genuinely tip you, and even if a payment terminal prompts for a tip. A checkout counter that recently added a tip screen does not put that role on the list.
Most articles are quoting an out-of-date number
You will see “68 occupations” repeated across the web. That figure came from the proposed regulations published in September 2025. The final regulations expanded the list — gas pump attendants were among the additions — and the official list now runs to 71 occupations across eight categories, codes 101 through 810. The list above is the final one.
Some entries surprise people
The list is broader than “restaurant and salon.” Chefs, cooks, dishwashers and food prep workers are on it, even though they usually do not take tips directly — tip pooling is why. So are home electricians, plumbers, HVAC installers and locksmiths, digital content creators, tutors, nannies, tattoo artists and golf caddies.
If you assumed you were not covered, search before concluding that. This is money people are leaving on the table.
Qualifying is necessary, not sufficient
Being on the list is one of several conditions. You also need to:
- report the tips — unreported tips cannot be deducted;
- have a valid Social Security number;
- file jointly if you are married, not separately;
- stay under the income phase-out, which begins at $150,000 of modified AGI ($300,000 joint).
The deduction is capped at $25,000, and unlike the overtime deduction that cap is not doubled for married couples.
Where the code shows up
From tax year 2026, employers report qualified tips separately, and the TTOC identifies the occupation. If your employer codes you incorrectly, or does not report tips separately at all, you can lose a deduction you were entitled to. It is worth checking your pay stub before the year closes rather than discovering it in April.
What it is worth
Roughly 3% of returns are expected to claim the tips deduction, with an average tax cut near $1,370. Put your own numbers into the tips deduction calculator to see your figure — and to see how much Social Security and Medicare you still owe on those tips, because that part did not change.