Overview

• Treasury’s preliminary list identifies roughly 68–69 occupations across eight sectors, from restaurant and hospitality roles to home services, transportation, and entertainment, with digital content creators included.
• The deduction lets qualifying workers exclude up to $25,000 in reported tip income from federal income tax for 2025–2028, phases out above $150,000 in AGI ($300,000 for joint filers), and does not affect payroll taxes.
• Officials say the proposed list will be published in the Federal Register in the coming days by Treasury and the IRS, after which public comments will be solicited before rules are finalized.
• Treasury Secretary Scott Bessent promoted the plan on Labor Day, calling the coverage "expansive but fair" and emphasizing incremental gains for service workers.
• Analysts note the change targets a small slice of the workforce—about 4 million workers, or 2.5% of employment—and critics argue many tipped workers owe little income tax already, limiting the policy’s reach.