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Married filing separately cannot claim this deduction at all

Modified adjusted gross income, before this deduction

Only jobs that customarily and regularly received tips before 2025 qualify

Which occupations are on the list?
Treasury's final list names 71 qualifying occupations across 8 categories — food and beverage service, entertainment and events, hospitality, home services, personal services, personal appearance and wellness, recreation and instruction, and transportation and delivery. Waitstaff, bartenders, hairstylists, and rideshare or delivery drivers are on it. A job that occasionally receives a tip but isn't on the list doesn't qualify, no matter how much was actually tipped.

Cash and charged tips, including tip-shares you received

Tips deduction

$0

Estimate for reference only, not verified proof — check the sources below, and their access date, before relying on this for a claim or filing.

Statutory cap
$25,000
Estimated tax savings
$0
Deduction reaches $0 at this MAGI
—

    Available only for tax years 2025 through 2028. If you're self-employed, the deduction is also limited to your net income from the tip-earning business — not modelled here.

    No tax on tips for house cleaners

    Whether house cleaners qualify, the Treasury occupation code on your W-2, what counts as a tip in this job, and what the deduction is worth.

    Yes — house cleaners are on Treasury's list of tipped occupations, as TTOC 407, so qualified tips from this work can be deducted from federal income tax, up to $25,000 a year through 2028, reduced above $150,000 of income ($300,000 filing jointly). In IRS data, tips made up 10.6% of pay for people in this occupation who reported tips.

    Reviewed by RuleCost Editorial Team. Rules for 2026, updated 30 Sept 2026.

    How to use it

    1. 1The calculator starts with $40,000 of income and $4,240 of tips, the typical tip share for house cleaners in IRS data. Replace both with yours.
    2. 2Choose your filing status. Married couples filing separately get no deduction.
    3. 3Read the deduction and the estimated federal income tax it saves.

    House cleaners at a glance

    Treasury Tipped Occupation Code407
    Official titleHome Cleaning Service Workers
    CategoryHome services
    Share who reported tips2.7%
    Tips as share of pay, among those with tips10.6%
    Share of all tips reported in the U.S.0.1%

    IRS figures for tax year 2023, from employees in the related occupation codes (37-2012). They include employees only, so self-employed workers aren't reflected. See all 71 codes.

    What the deduction is worth

    Take a single filer earning $40,000 in total, with tips making up 10.6% of it — the typical share for house cleaners who report tips. That is $4,240 of tips, all of it deductible, which saves an estimated $509 of federal income tax for the year. Social Security and Medicare tax on tips don't change.

    What counts as a tip

    Tips from the household count; the price of the cleaning does not. If you clean for your own clients, you are self-employed, so the deduction can’t exceed your net income from cleaning after supplies and travel.

    Where it shows on your W-2

    As an employee, from tax year 2026 your qualified tips appear in Box 12 with code TP, and code 407 in Box 14b. If Box 14b says 000, your employer is treating the job as not qualifying — ask them why. See how to read the new W-2 boxes.

    Questions

    Do house cleaners qualify for no tax on tips?
    Yes. House cleaners are on Treasury's final list of occupations that customarily and regularly received tips, as TTOC 407 (Home Cleaning Service Workers). Qualified tips from this work can be deducted from federal income tax for 2025 through 2028.
    What is the TTOC code for house cleaners?
    407. It is in the home services category. From tax year 2026, employers put it in Box 14b of your W-2 next to the tips reported in Box 12 with code TP.
    How much can I deduct?
    Up to $25,000 of qualified tips a year, the same cap whether you file single or jointly. It shrinks by $100 for every $1,000 of income above $150,000 of income ($300,000 filing jointly). Married couples filing separately can't claim it.
    What counts as a tip for house cleaners?
    Tips from the household count; the price of the cleaning does not. If you clean for your own clients, you are self-employed, so the deduction can’t exceed your net income from cleaning after supplies and travel.
    Does it apply if I’m self-employed?
    Yes, with two limits: the deduction can't exceed your net income from the business the tips came from, and tips received in a "specified service trade or business" (such as health, law or financial services) don't qualify.