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No tax on tips

Up to $25,000

How Does the No Tax on Tips Deduction Work?

Short answer: Yes, for 2025-2028 workers in tipped jobs can deduct up to $25,000 of qualified tips, itemizing or not.

Phases out above $150,000 of income ($300,000 joint); Social Security and Medicare still apply.

Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.