The deduction is capped at $25,000 for creators making $150,000 annually
The “no tax on tips” law passed under President Donald Trump’s Big Beautiful Bill this year has included digital content creators in the list of workers qualifying for a new tax deduction.
It means that, alongside traditional roles like bartenders, servers, dealers, and bellhops, the law now covers podcasters, streamers, and social media influencers earning tips online. Performers like comedians, musicians, and DJs are also included.
The deduction is capped at $25,000 for creators making $150,000 annually. Tips in fields like health, athletics, or traditional performing arts don’t qualify.
Platforms like TikTok, YouTube, and Twitch already offer ad revenue, subscriptions, and tip-based features, but the tax break could make tips and gifts more attractive than recurring subscription revenue.
Tips are already a major revenue source for Twitch streamers and creators on adult sites like OnlyFans. However, the Treasury Department is reportedly looking to exclude tips earned from “illegal activity, prostitution, or pornography.”
A 2024 study found that 19% of large influencers reported receiving audience tips.