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If you have questions for our
Government Relations team, email
gr@associatedhairprofessionals.com.
PEXELS
In September, US Treasury Secretary Scott
Bessent
made it official: Barbers, hairstylists, and
cosmetologists made the cut for a tax break on tips,
starting this year. Beginning with the taxes you file in
2026, you will be able to deduct up to $25,000 in tips
from your federal income tax. is means you'll take
more money home for the next few years. is tax break
isn't forever—at least not yet. It's currently scheduled
to phase out aer 2028, but that could change if federal
lawmakers decide to extend it.
We've been hearing about tax tip exemptions for
years from both sides of the aisle. It's a universally
popular measure with bipartisan support that many
politicians make a cornerstone of their campaigns. e
"how" was a major point of contention between parties,
but now we have some answers. Here's what you need to
know about this tax break:
• You are still required to report tipped income. e
difference is that you can deduct it from your federal
income tax.
• It only applies to those of certain professions
(including yours!) who make less than $150,000 per
year or less than $300,000 per year filing jointly.
• You will still pay Social Security and Medicare taxes
on your tips.
• Anything beyond the $25,000 threshold for tips in a
tax year will be subject to federal tax.
• Other jobs you hold that receive tipped income might
not qualify for the tax break. Check the IRS and
Treasury's ruling in the Federal Register to make sure
the jobs you have are eligible for the exemption.
SO, WHAT HAPPENS NOW?
ere is a public comment period during which you
can make your support for the provision known. e
federal government will have an open period for public
comments on the newly issued guidelines for the
It's Official: The Tip
Tax Break Is Here!
by Laura Puryear
tax break before they can be made offi cial. Continue
recording your tipped income so you can report it in
your annual taxes in 2026. Consult a tax professional to
make sure you understand the right way to report and
how this change could impact you.
Associated Hair Professionals (AHP) will continue
to support measures like the tip tax break that let
hardworking cosmetologists, barbers, and hairstylists
keep more of the money they earn. Keep an eye on your
email for instructions from AHP on how to express
your support and put your comments on the record for
this change to federal tax policy. More money for you
and all AHP members? at's something we can all get
on board with.
Resources
Allen, M. "Scoop: List of Jobs Covered by Trump's 'No Tax on
Tips' (See if You Qualify)." Axios. September 1, 2025.
axios.com/2025/09/01/no-tax-on-tips-jobs-trump-bill.
Datoc, C. "About 70 Professions Will Qualify for Trump's 'No
Tax on Tips' Deduction: Treasury." Washington Examiner.
September 1, 2025. washingtonexaminer.com/news/white-
house/3789206/around-70-jobs-qualify-trump-no-tax-on-tips-
deduction-treasury-department.
Garrett, L. "Congress Passed No Tax on Tips in Trump's 'Big,
Beautiful Bill.' Here's How It Works." NPR. July 3, 2025. npr.org
/2025/07/03/g-s1-75790/no-tax-on-tips-congress-trump-big-
beautiful-bill.
Taylor, K. R. "'No Tax on Tips' Approved for 2025: What to
Know Now." Kiplinger. Last modified September 2, 2025.
kiplinger.com/taxes/no-tax-on-tips-bill-approved.
ADVOCACY
AHP
