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Is no tax on tips available for restaurant hosts?
Restaurant hosts are on the official Treasury list of occupations that customarily and regularly received tips, under Treasury Tipped Occupation Code 109: Host staff, restaurant, lounge, and coffee shop.
Being on the list is the first rule for the no tax on tips deduction. It does not settle it on its own. Whether the deduction may apply to you also depends on the tips themselves, your income, and a few other rules below.
| Official code (TTOC) | 109 |
|---|---|
| Official title | Host staff, restaurant, lounge, and coffee shop |
| Category | Beverage and food service |
| What the job covers | Welcome patrons, seat them, and help ensure quality of facilities and service. |
| Examples on the list | Maître d’hôtel, dining room host |
Quoted from the IRS list of occupations that received tips, from the final regulations (T.D. 10044).
Which tips count for restaurant hosts
- Tips customers chose to give you, in cash or by card, check, gift card or payment app.
- Tips you got through a tip pool or tip sharing at work.
- Tips that show up on your W-2 or 1099, or that you report yourself on Form 4137.
What does not count
- Automatic service charges the customer cannot change or remove.
- Noncash tips, like tickets or goods.
- Tips earned in a specified service trade or business (such as health, law, accounting, consulting, performing arts, athletics or financial services), or for an employer in one of those fields.
Limits
- Up to $25,000 of qualified tips per return, per year, for 2025 through 2028.
- The deduction shrinks by $100 for each full $1,000 of modified AGI over $150,000 ($300,000 joint).
- Self-employed: no more than your net profit from that work.
- You need a Social Security number valid for work, and married couples must file jointly.
How restaurant hosts claim it
Use Schedule 1-A, Part II, with your Form 1040. For 2026, your W-2 shows cash tips in box 12 (code TP) and occupation code 109 in box 14b if you are an employee. Keep your own tip records either way.
Common questions
Are restaurant hosts eligible for no tax on tips?
Restaurant hosts are on the Treasury list of occupations that customarily and regularly received tips, under code 109 (Host staff, restaurant, lounge, and coffee shop). Being on the list is the first rule. The tips also have to be qualified tips, and income limits and other rules apply.
How much in tips can restaurant hosts deduct?
Up to $25,000 of qualified tips per return, per year, for 2025 through 2028. The amount shrinks by $100 for each full $1,000 of modified AGI over $150,000 ($300,000 joint).
Do card and app tips count?
Yes, if the customer chose to give them. Qualified tips can be paid in cash, by check, credit or debit card, gift card, or a payment app. Automatic service charges do not count.
What is the Treasury Tipped Occupation Code for restaurant hosts?
The code is 109. On 2026 Forms W-2, employers report the code in box 14b.