# No tax on tips for taxi and rideshare drivers

Yes — taxi and rideshare drivers are on Treasury's list of tipped occupations as TTOC 802 (Taxi and Rideshare Drivers and Chauffeurs), 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/rideshare-drivers/).

- Treasury Tipped Occupation Code: 802
- Category: Transportation and delivery
- Share who reported tips: 24.9%
- Tips as share of pay, among those with tips: 21.2%
- Related SOC codes: 53-3054

What counts as a tip: Tips customers add in the app count. The fare or delivery fee, surge pricing and platform bonuses are not tips. Most drivers are independent contractors, so the deduction can’t exceed your net income from driving after expenses.

## 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