New federal guidance confirms that tips given in casino chips will qualify as deductible under the “No Tax on Tips” provision, Treasury Department officials have clarified. Under the law, “cash tips” include not only literal cash but also payments by check, debit and credit cards, mobile payment systems, and situations where tips are pooled—so long as those tips are reported and voluntary. Mandatory gratuities or auto-gratuities would not qualify. 

The change stems from the One Big Beautiful Bill Act (OBBBA), signed in July 2025. Effective with the 2025 tax year (returns filed in 2026), workers in occupations that “customarily and regularly received tips” before December 31, 2024 will be able to deduct up to $25,000 in “qualified tips” from their federal taxable income. The deduction phases out for higher-income earners. Treasury has released a preliminary list of 68 tipped occupations, which includes many gaming-industry roles such as casino dealers, change-persons, and cage workers among the qualifying jobs. 

Treasury officials say the rules are expected to be clarified further through proposed regulations. Otherwise, eligible workers will need to ensure their tips are properly documented (like being reported to employers and on W-2 forms) in order to claim the deduction. 

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