Treasury tipped occupation codes: how the final list works

Each occupation sits in one of eight groups.

• 100s Beverage and Food Service
• 200s Entertainment and Events
• 300s Hospitality and Guest Services
• 400s Home Services
• 500s Personal Services, which now includes visual artists and floral designers
• 600s Personal Appearance and Wellness
• 700s Recreation and Instruction
• 800s Transportation and Delivery, which now includes gas pump attendants

The tip must be paid voluntarily and not be subject to negotiation, come from customers or through a tip-sharing arrangement such as a tip pool, and be paid in cash or an equivalent such as a card payment or check. An automatic service charge the customer cannot change is not a qualified tip.

The tips must appear on a W-2, 1099-NEC, 1099-MISC or 1099-K, or be reported on Form 4137. Self-employed workers in a listed occupation can qualify, limited to their net income.

Map every tipped role to its code before the 2026 year-end forms run, and separate voluntary tips from mandatory service charges in the point-of-sale and payroll setup. Restaurants that add automatic gratuities for large parties should know those amounts will not help staff with the deduction.