IRS, Treasury Release Details About ‘No Tax on Tips’ Deduction

In a document released on the Federal Register’s website, the agencies outlined the type of jobs and what type of tips are eligible.

A view of the IRS building in Washington on April 11, 2025. Jonathan Ernst/Reuters

The U.S. Treasury Department and IRS on Sept. 19 released details about a provision backed by the Trump administration and Republicans, passed by Congress earlier this year, that would provide a tax break for many employees who receive cash tips.

In a document released on the Federal Register’s website, the agencies outlined what type of jobs and what type of tips are eligible under the new regulations, which were passed as part of the One Big Beautiful Bill Act in July.