No Tax on Tips for Nail Technicians (2026)
Yes. Nail Technicians are on the IRS tipped jobs list (code 605), so you can deduct up to $25,000 of tips from federal income tax for 2026. Manicurists and pedicurists are on the IRS tipped jobs list.
- IRS code 605
- Cap $25,000
- W-2 or 1099
Tips calculator for nail technicians
Private: runs in your browserEstimate of federal income tax only. Not tax advice.
Example: nail tech
- Salon employee, $34,000 wages including $8,000 code TP, singleQualified tips $8,000.Deduct $8,000 · save about $910 in federal tax
What nail techs 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.
- Manicurists and pedicurists are code 605.
- Employees use code TP on the W-2; independent techs use their own records and the net-profit limit.
- A fixed “service fee” added to every bill isn’t a tip.
Your IRS code
605 Manicurists and pedicurists. Not your exact job? See the full list of 71 tipped jobs.
Nail Technicians: FAQ
Do nail techs qualify?
Yes. Manicurists and pedicurists are code 605 on the IRS list.
Do I need a W-2?
No. Self-employed techs can deduct tips too, up to their net profit.
Are tips from gift cards counted?
Yes, if the customer chose the tip amount.
How much can nail techs 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
- Hairstylists and CosmetologistsCode 603. W-2 or 1099.
- Massage TherapistsCode 602. W-2 or 1099.
- BarbersCode 603. W-2 or 1099.
- 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.