# No tax on tips for baristas and counter workers

Yes — baristas and counter workers are on Treasury's list of tipped occupations as TTOC 107 (Fast Food and Counter Workers), so qualified tips from this work can be deducted from federal income tax, up to $25,000 a year for 2025 through 2028, reduced above $150,000 of income ($300,000 filing jointly).

Work out your deduction with the free [calculator on this page](https://rulecost.com/paycheck/no-tax-on-tips/baristas/).

- Treasury Tipped Occupation Code: 107
- Category: Beverage and food service
- Share who reported tips: 40.1%
- Tips as share of pay, among those with tips: 17.9%
- Related SOC codes: 35-3023

What counts as a tip: Tip jar money and tips added on the card screen both count, including what you get from a shared tip jar. Keep reporting them to your employer: only tips reported to your employer end up on your W-2.

## Sources

- [T.D. 10044: Occupations That Customarily and Regularly Received Tips; Definition of Qualified Tips (Internal Revenue Bulletin 2026-18)](https://www.irs.gov/pub/irs-irbs/irb26-18.pdf), Internal Revenue Service
- [26 U.S.C. § 224 — Qualified tips](https://www.law.cornell.edu/uscode/text/26/224), Legal Information Institute, Cornell Law School