Illustration of the 2026 tip deduction — a server holding a tip tray with cash and receipts
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Tip Deduction 2026: Who Qualifies for the $25K Break?

BySW Accounting admin

Who qualifies for the new $25,000 federal tip deduction? The tip deduction 2026 is an above-the-line deduction for workers in customarily tipped jobs — waiters, bartenders, stylists, rideshare drivers and roughly 70 other IRS-listed occupations — worth up to $25,000 of qualified tips for tax years 2025 through 2028, subject to income phaseouts. For decades,…

Illustration of IRS No Tax on Tips final regulations under the One Big Beautiful Bill — Treasury Tipped Occupation Code list and qualified tips definition
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No Tax on Tips Final Regulations: 70+ Occupations, Qualified Tips Guide

BySW Accounting admin

Who qualifies for the No Tax on Tips deduction under the final regulations? The Treasury and IRS issued final regulations on April 10, 2026 (IR-2026-49) implementing the “No Tax on Tips” deduction under the One, Big, Beautiful Bill Act (OBBBA). Workers in 70+ occupations on the Treasury Tipped Occupation Code (TTOC) list can deduct qualified…