# No tax on tips for servers and waiters

Yes — servers and waiters are on Treasury's list of tipped occupations as TTOC 102 (Wait Staff), 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/servers/).

- Treasury Tipped Occupation Code: 102
- Category: Beverage and food service
- Share who reported tips: 74.5%
- Tips as share of pay, among those with tips: 63.5%
- Related SOC codes: 35-3031

What counts as a tip: Tips from customers count, including card tips and your share of a tip pool. An automatic service charge, such as a mandatory gratuity added for a large party, is not a tip, even if it is paid out to staff.

## 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