No Tax on Tips for Massage Therapists (2026)
Yes. Massage Therapists are on the IRS tipped jobs list (code 602), so you can deduct up to $25,000 of tips from federal income tax for 2026. Spa employees and independent therapists can both qualify, with one extra check for the self-employed.
- IRS code 602
- Cap $25,000
- W-2 or 1099
Tips calculator for massage therapists
Private: runs in your browserEstimate of federal income tax only. Not tax advice.
Example: massage therapist
- Spa employee, $45,000 wages including $9,500 code TP, singleQualified tips $9,500.Deduct $9,500 · save about $1,140 in federal tax
What massage therapists should know
- On payroll, look for box 12 code TP on your W-2. Self-employed, use your own records; tips are capped at your net profit.
- Massage therapists are code 602.
- Spa and resort employees: look for code TP on your W-2.
- If you work for yourself, tips earned in a “specified service trade or business” (fields like health or performing arts) have extra limits. Check the Schedule 1-A instructions; this site doesn’t decide that for you.
Your IRS code
602 Massage therapists. Not your exact job? See the full list of 71 tipped jobs.
Massage Therapists: FAQ
Do massage therapists qualify for no tax on tips?
Yes. Massage therapists are code 602 on the IRS list.
I’m self-employed. Anything special?
Your tips are capped at your net profit, and some health-related businesses have extra limits. Check the Schedule 1-A instructions.
Do tips on a resort bill count?
Yes, if the guest chose the amount. A fixed service charge doesn’t.
How much can massage therapists 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.
Related tools and guides
- Nail TechniciansCode 605. W-2 or 1099.
- Hairstylists and CosmetologistsCode 603. W-2 or 1099.
- Hotel HousekeepersCode 304. W-2 code TP.
- No tax on tips calculatorW-2 code TP, box 14b and 1099 tips, with the net-profit limit.
- IRS tipped occupations listAll 71 Treasury Tipped Occupation Codes, searchable.
- W-2 code TP and box 14bCash tips reported to your employer and your occupation code.
- No tax on tips by jobBartenders, servers, stylists, drivers and more.