Schedule 1-A ยท Tax year 2026
Tips Deduction Calculator: Estimate the 2026 Deduction for Tips
For tax year 2026 there is a deduction for voluntary cash tips, up to $25,000 per return. Enter the cash tips you received and reported, and the calculator estimates the deduction and applies the $25,000 limit and the income phaseout. Service charges are not tips and do not count.
Last reviewed: November 3, 2026.
The tips deduction calculator
The rules, in one table
| Maximum | $25,000 of qualified tips per return. The limit is the same on a joint return; it is not doubled |
|---|---|
| What counts | Voluntary cash tips, reported as income |
| What does not count | Service charges: amounts the business adds itself, such as an automatic charge for a large party |
| 2026 reporting rule | The deduction is generally limited to the amount your employer separately reported in Box 12 code TP. This rule is stated in IRS Fact Sheet FS-2026-13 |
| Phaseout | Begins at $150,000 of modified AGI, or $300,000 on a joint return |
| Payroll tax | Unchanged. This deduction reduces income tax only; Social Security and Medicare tax still apply to the same pay in full |
| Years | Tax years 2025 through 2028 |
The occupation rule
The tips must also be earned in an occupation on the Treasury list. That rule is carried by codes, not by job titles, and the published facts are these:
| The list | 71 Treasury Tipped Occupation Codes, carried in the final Treasury regulations, T.D. 10044 (April 13, 2026) |
|---|---|
| Where your code appears | Box 14b of your W-2, on a W-2 that reports tips under Box 12 code TP |
| Code 000 | Means the employer reported that some of the tips were not earned in an occupation on the Treasury list |
| Still open | The law also excludes tips earned in a specified service trade or business, but that exclusion is still deferred in IRS guidance, so the final reach of the occupation rule has not been settled |
Because that exclusion is unsettled, this site does not turn the occupation list into a verdict about any one worker. The full occupation discussion is in the tips section of the Schedule 1-A page, and the meaning of the Box 14b code on your own W-2 is in the W-2 decoder.
The full list of Treasury Tipped Occupation Codes
The complete list is reproduced below, exactly as published: every code with the occupation title the regulations give it, in the eight categories the regulations use. The source is Table 1 to paragraph (h) of the final regulations in T.D. 10044 (Federal Register, Vol. 91, No. 70, April 13, 2026, pages 19026 to 19056). The list was retrieved on November 3, 2026. The same list stands alone, with a fuller explanation of how the codes are used, on the Treasury Tipped Occupation Codes page.
Read the list as a list. Appearing in it is one published fact about an occupation. Whether any one worker's tips qualify also depends on the rest of the rules on this page, and the specified service trade or business exclusion described above is still unsettled in IRS guidance.
All 71 occupations are shown.
Beverage and Food Service
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 101 | Bartenders |
| 102 | Wait Staff |
| 103 | Food or Beverage Servers, Non-restaurant |
| 104 | Dining Room and Cafeteria Attendants and Bartender Helpers |
| 105 | Chefs and Cooks |
| 106 | Food Preparation Workers |
| 107 | Fast Food and Counter Workers |
| 108 | Dishwashers |
| 109 | Host Staff, Restaurant, Lounge, and Coffee Shop |
| 110 | Bakers |
Entertainment and Events
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 201 | Gambling Dealers |
| 202 | Gambling Change Persons and Booth Cashiers |
| 203 | Gambling Cage Workers |
| 204 | Gambling and Sports Book Writers and Runners |
| 205 | Dancers |
| 206 | Musicians and Singers |
| 207 | Disc Jockeys, Except Radio |
| 208 | Entertainers and Performers |
| 209 | Digital Content Creators |
| 210 | Ushers, Lobby Attendants, and Ticket Takers |
| 211 | Locker Room, Coatroom, and Dressing Room Attendants |
Hospitality and Guest Services
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 301 | Baggage Porters and Bellhops |
| 302 | Concierges |
| 303 | Hotel, Motel, and Resort Desk Clerks |
| 304 | Maids and Housekeeping Cleaners |
Home Services
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 401 | Home Maintenance and Repair Workers |
| 402 | Home Landscaping and Groundskeeping Workers |
| 403 | Home Electricians |
| 404 | Home Plumbers |
| 405 | Home Heating and Air Conditioning Mechanics and Installers |
| 406 | Home Appliance Installers and Repairers |
| 407 | Home Cleaning Service Workers |
| 408 | Locksmiths |
| 409 | Roadside Assistance Workers |
Personal Services
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 501 | Personal Care and Service Workers |
| 502 | Private Event Planners |
| 503 | Private Event and Portrait Photographers |
| 504 | Private Event Videographers |
| 505 | Event Officiants |
| 506 | Pet and Show Animal Caretakers |
| 507 | Tutors |
| 508 | Nannies and Babysitters |
| 509 | Visual Artists |
| 510 | Floral Designers |
Personal Appearance and Wellness
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 601 | Skincare Specialists |
| 602 | Massage Therapists |
| 603 | Barbers, Hairdressers, Hairstylists, and Cosmetologists |
| 604 | Shampooers |
| 605 | Manicurists and Pedicurists |
| 606 | Eyebrow and Eyelash Technicians |
| 607 | Makeup Artists |
| 608 | Exercise Trainers and Group Fitness Instructors |
| 609 | Tattoo Artists and Piercers |
| 610 | Tailors |
| 611 | Shoe and Leather Workers and Repairers |
Recreation and Instruction
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 701 | Golf Caddies |
| 702 | Self-Enrichment Teachers |
| 703 | Recreational and Tour Pilots |
| 704 | Tour Guides |
| 705 | Travel Guides |
| 706 | Sports and Recreation Instructors |
Transportation and Delivery
| Code | Occupation, as titled in T.D. 10044 |
|---|---|
| 801 | Parking and Valet Attendants |
| 802 | Taxi and Rideshare Drivers and Chauffeurs |
| 803 | Shuttle Drivers |
| 804 | Goods Delivery People |
| 805 | Personal Vehicle and Equipment Cleaners |
| 806 | Private and Charter Bus Drivers |
| 807 | Water Taxi Operators and Charter Boat Workers |
| 808 | Rickshaw, Pedicab, and Carriage Drivers |
| 809 | Home Movers |
| 810 | Gas Pump Attendant |
The regulations also state that individuals serving as assistants or apprentices in a listed occupation are included in that occupation category if they perform the same services as those listed in the occupation description.
Sources
- Public Law 119-21, enacted July 4, 2025. Created this deduction, its $25,000 limit, and its phaseout.
- Treasury Decision 10044, April 13, 2026. The final regulations carrying the 71 Treasury Tipped Occupation Codes. Federal Register, Vol. 91, No. 70, pages 19026 to 19056, FR Doc. 2026-07104; the list is Table 1 to paragraph (h) of 26 CFR 1.224-2. Full text at govinfo.gov, retrieved November 3, 2026.
- IRS, Fact Sheet FS-2026-13, August 6, 2026. States the 2026 reporting rule limiting the deduction to the amount the employer separately reported. Source level: guidance, not binding legal authority.
- IRS, Instructions for Forms W-2 and W-3, tax year 2026. Final version, posted January 30, 2026. Carries Box 12 code TP and Box 14b.
- IRS, Fact Sheet FS-2026-04, and Treasury claimant figures reported in Deloitte Tax News and Views, June 5, 2026. More than 7.5 million filers claimed this deduction for 2025, with an average claim over $7,000.
Last reviewed: November 3, 2026.