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No Tax on Tips for Baristas and Counter Workers (2026)

Tax year 2026 · Last updated · Maintained by the WattFlow team

Yes. Baristas and Counter Workers are on the IRS tipped jobs list (code 107), so you can deduct up to $25,000 of tips from federal income tax for 2026. Tip-jar and app tips at coffee shops and counters can qualify.

Tips calculator for baristas and counter workers

Private: runs in your browser
Form 1040, line 11. Include your overtime and tips.
Must be on the IRS tipped jobs list.
Gig work or 1099 tips? DoorDash, Uber, self-employed
Schedule C net profit. You can’t deduct more than this.
More options Tax year, itemizing, special cases
Leave blank if you take the standard deduction.
Optional. 000 means the job doesn’t qualify.
Only if you report extra tips yourself.

Estimate of federal income tax only. Not tax advice.

Example: barista

What baristas should know

Your IRS code

107 Fast food and counter workers. Not your exact job? See the full list of 71 tipped jobs.

Baristas and Counter Workers: FAQ

Do baristas qualify for no tax on tips?

Usually yes. Counter workers, including coffee-shop staff, are on the IRS list as code 107.

Do app tips count?

Yes, if customers chose to add them. They should appear in your W-2 tips.

Is it worth it for small tip amounts?

It still lowers your federal tax. Use the calculator to see the dollar amount.

How much can baristas deduct?

Up to $25,000 of qualified tips per tax return, for 2025 through 2028. It shrinks by $100 for each full $1,000 of income over $150,000 ($300,000 joint).

Do I still pay Social Security and Medicare on tips?

Yes. The deduction only lowers federal income tax. Payroll or self-employment tax and state tax don’t change.