Who Qualifies as a Tipped Employee?
A Complete Guide Under the OBBB Act
The One Big Beautiful Bill Act (OBBB Act) introduced a groundbreaking provision: “no tax on tips.” But to qualify, tips must be earned in an occupation that customarily and regularly received tips on or before December 31, 2024.
To help workers, businesses, and advisors understand who’s covered, the Treasury Department and IRS released a preliminary list of tipped occupations. Below, we break it down into clear categories.
🍽️ Food & Beverage
Bartenders – mixing and serving drinks.
Wait Staff – table service in restaurants.
Food Servers (Nonrestaurant) – hotel room service, golf carts, or delivery within a venue.
Dining Room Attendants & Bussers – setting tables, clearing dishes, assisting service.
Chefs & Cooks – from fast food to private chefs and caterers.
Food Prep Workers – salad makers, sandwich assemblers, kitchen support.
Fast Food & Counter Staff – baristas, ice cream servers, cafeteria attendants.
Dishwashers – cleaning dishes and kitchen tools.
Hosts/Hostesses – greeting and seating guests.
Bakers – preparing breads, pastries, and desserts.
🎭 Entertainment & Events
Gambling Dealers & Staff – blackjack, poker, craps, roulette.
Change Persons & Cage Workers – exchanging chips, cash, and tickets.
Sports Book Writers & Runners – processing wagers, bingo workers.
Performers – dancers, musicians, singers, DJs, comedians, magicians, street performers.
Digital Content Creators – streamers, podcasters, influencers.
Ushers & Ticket Takers – at theaters, concerts, or events.
Coatroom & Locker Room Attendants – providing guest services.
🏨 Hospitality & Guest Services
Bellhops/Baggage Porters – assisting with luggage.
Concierges – offering guest services and recommendations.
Hotel/Motel Desk Clerks – check-in, reservations, billing.
Housekeepers – maintaining clean rooms and facilities.
🏡 Home Services
Maintenance & Repair Workers – handymen, painters, roofers.
Landscapers & Groundskeepers – lawn care, tree trimming, planting.
Electricians & Plumbers – residential services.
HVAC Technicians – heating and cooling repairs.
Appliance Installers & Repairers – dishwashers, refrigerators, washers.
Home Cleaners – housekeepers, carpet cleaners, window washers.
Locksmiths – keys, safes, lock repairs.
Roadside Assistance Workers – tow truck drivers, tire changers.
🙋 Personal Services
Personal Care Aides & Companions – supporting individuals with daily living needs.
Event Planners, Photographers & Videographers – weddings, parties, portraits.
Event Officiants – weddings, funerals, vow renewals.
Pet Caretakers – groomers, walkers, sitters.
Tutors – academic support.
Nannies & Babysitters – childcare at homes, hotels, or gyms.
💇 Personal Appearance & Wellness
Skincare Specialists – facials, esthetics.
Massage Therapists – therapeutic and sports massage.
Hairdressers, Barbers, Cosmetologists – cutting, coloring, styling.
Shampooers – assisting salons.
Nail Technicians – manicures, pedicures, nail art.
Eyebrow/Waxing Technicians – threading, waxing, tweezing.
Makeup Artists – weddings, events, performances.
Fitness Instructors – yoga, aerobics, group exercise.
Tattoo Artists & Piercers – body art and jewelry.
Tailors & Shoe Repairers – alterations, cobblers, shoe shiners.
⛳ Recreation & Instruction
Golf Caddies – carrying clubs, advising players.
Self-Enrichment Teachers – piano, art, dance instructors.
Recreational Pilots – sightseeing or tour flights.
Tour Guides & Travel Escorts – museums, cruises, sightseeing.
Sports & Recreation Instructors – skiing, diving, tennis, surfing.
🚗 Transportation & Delivery
Parking & Valet Attendants – vehicle service.
Taxi, Rideshare Drivers & Chauffeurs – personal transport.
Shuttle Drivers – hotel or airport routes.
Delivery Workers – pizza, groceries, packages, furniture.
Car Wash & Auto Detailers – cleaning and maintaining vehicles.
Charter Bus Drivers & Boat Operators – private tours.
Pedicab & Carriage Drivers – bike taxis, horse carriages.
Movers – assisting with household relocations.
Final Thoughts
This list is preliminary and will be refined through official regulations. The OBBB Act opens major opportunities for service workers—but employers and employees must confirm whether their role qualifies before adjusting payroll or tax filings.
For now, if you’re in hospitality, food service, entertainment, home repair, personal care, or transportation, chances are good your occupation is included.
✅ Tip for Businesses: If your team includes tipped workers, consult a tax professional to ensure compliance as final IRS guidance is released.
