39 | Friday, September 19, 2025Who qualifies for 'no tax on tips' and what counts as a tip? To qualify as a tip, the tips must be must be earned in an occupation on Treasury's list of qualified occupations. The tip must be voluntarily given, so mandatory tips or auto-gratuities would not qualify for the "no tax on tips" benefit. The "no tax on tips" provision will be implemented retroactively to Jan. 1, 2025. Congressional budget analysts project the "No Tax on Tips" provision would increase the deficit by $40 billion through 2028.