No tax on tips for concierges
Yes, concierges qualify. The occupation is on the Treasury list of jobs that customarily received tips before 2025 (Tipped Occupation Code 302, hospitality and guest services). Qualified tips you earn in 2026 can be deducted, up to $25,000, on Schedule 1-A.
What counts as a tip for concierges
Cash left in the room, tips handed over at the door and tips added to a guest's card all count, as long as you report them to your employer so they appear on your W-2 (or on Form 4137 if not).
How much could you save?
Federal income tax saved in 2026 for a single filer with $30,000 of other wages.
| Tips in 2026 | Tax saved | Deduction |
|---|---|---|
| $5,000 | $600 | $5,000 |
| $10,000 | $1,200 | $10,000 |
| $15,000 | $1,800 | $15,000 |
| $25,000 | $3,000 | $25,000 |
How to claim it
- Report every tip to your employer so it is included on your Form W-2, or file Form 4137 for unreported tips. If you are self-employed, make sure tips appear on your 1099 or business records.
- Enter your qualified tips and the occupation code 302 on Schedule 1-A, Part II.
- Carry the deduction to Form 1040. You can claim it with the standard deduction.
Other hospitality and guest services jobs on the list
Frequently asked questions
Do concierges qualify for the no tax on tips deduction?
Yes. Concierges are on the Treasury list of occupations that customarily and regularly received tips on or before December 31, 2024 (code 302), so qualified tips earned from 2025 through 2028 can be deducted, up to $25,000 a year.
How much tax would concierges save on $10,000 of tips?
About $1,200 in federal income tax for a single filer with $30,000 of other wages in 2026. Social Security and Medicare tax still apply to tips.
Do I need to be an employee to qualify?
No. Both employees and self-employed workers in a listed occupation can claim it. Self-employed workers cannot deduct more than the net profit from the business where the tips were earned.