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President Trump delivered on his campaign promise to help hardworking Americans keep more of their money. On July 4, 2025, he signed the One Big Beautiful Bill Act that eliminates federal income taxes on tips for millions of service workers. This is real tax relief for the people who serve our food, cut our hair, and work their tails off every day.
The Treasury Department just released the official list of 68 jobs that qualify for this massive tax break. Workers can now deduct up to $25,000 per year in tips from their federal income taxes. That means more money in their pockets and less going to the swamp in Washington.
The list covers eight different job categories that touch every American community. Restaurant workers like bartenders, waiters, and cooks all qualify. So do barbers, hairstylists, nail technicians, and makeup artists. Even golf caddies, tour guides, and rideshare drivers get this benefit.
Treasury Secretary Scott Bessent visited three restaurants on Labor Day to promote this pro-worker policy. He told reporters that even $20 here and $20 there makes a real difference for working families. That’s the kind of common sense thinking we need more of in government.
The tax break phases out for high earners, which is fair and smart. Single people making over $150,000 and married couples making over $300,000 start losing the benefit. This ensures the help goes to middle class families who actually need it, not wealthy elites.
Employers will need to track and report tip income on tax forms. The IRS will update withholding procedures to make this work smoothly. Beauty service businesses also get expanded tax credits for the Social Security and Medicare taxes they pay on employee tips.
This policy proves Trump fights for everyday Americans while Democrats talk down to them. He understands that people who work for tips are the backbone of our economy. They serve our communities with pride and deserve to keep what they earn.
The Congressional Budget Office says this will cost $3.4 trillion over ten years, but that’s money staying with the people who earned it. When Americans keep more of their own money, they spend it, save it, and invest it better than any government bureaucrat ever could. That’s how you build a strong economy from the ground up.
