IRS Hospitality (TTOC)
Do concierges qualify for the No Tax on Tips deduction?
Hotel concierges are on the IRS Treasury Tipped Occupation Code list. What makes this role unique for §224 is a hidden trap: many concierges earn 'commissions' or 'kickbacks' from local restaurants, tour operators, spas, and taxi services in exchange for guest referrals — and those commissions are NOT tips. They are business income and reported separately. Distinguishing genuine voluntary guest tips from partner commissions is the biggest §224 issue for this role.
Short answer
Yes. Concierges are on the IRS TTOC list. Voluntary tips from guests — for restaurant reservations, VIP requests, tour bookings, hard-to-get tickets — qualify for the federal No Tax on Tips deduction, up to $25,000 per year. Commissions or referral fees from partner businesses (restaurants, tour operators) are NOT tips and do not qualify.
How much could you save?
Typical tip income for concierges.
Full-time concierges typically report $5,000-$15,000 in annual voluntary tip income. Luxury properties, resort concierges, and boutique-hotel concierges with strong VIP relationships see the higher end. The larger income component for many concierges is partner commissions — which do NOT qualify — so the qualified portion is often smaller than take-home suggests.
For concierges specifically
What counts as a qualified tip — and what doesn't.
✓ Qualifies
- Voluntary cash tips at the desk (post-service, for reservations, VIP arrangements)
- Voluntary tips added to the guest folio (via mobile check-in or checkout)
- Voluntary post-stay tips from grateful guests (cash, envelopes, gifts)
- Voluntary tips from group organizers on top of group contracts
✗ Does not qualify
- Commissions from restaurants, tour operators, or spas for guest referrals (business income)
- 'Booking fees' the hotel charges guests for reservation services (revenue)
- Concierge program membership fees
- Base hourly wage or 'concierge bonus' from the property
- Any 'service package' fee bundled into a VIP package
- Kickbacks or referral fees paid by outside businesses to the concierge personally
A worked example
Isabella, a real-world concierge.
Isabella is a lead concierge at a boutique luxury hotel, W-2, single filer, MAGI $58,000. For the tax year, she logged $8,200 in QUALIFIED voluntary tips (separate from $6,000 in partner commissions, which do NOT qualify). She sits in the 22% federal marginal bracket.
- Deduction allowed: $8,200 deduction (only the voluntary tip portion)
- Estimated savings: About $1,804 off federal income tax
This is an illustrative example, not a guarantee. Your actual savings depend on your filing status, total income, state, and other deductions.
Questions specific to concierges
What other concierges ask.
The restaurant I booked pays me $20 per reservation. Is that a tip?
No. That is a referral commission from a business — it is business income, not a customer tip. Report those commissions as ordinary income or on Schedule C. Only voluntary tips from the hotel guest to you qualify under §224.
How do I separate voluntary guest tips from partner commissions on my paystub?
Partner commissions typically come through separate 1099 payments or a paycheck line labeled 'concierge income' or 'commissions.' Voluntary guest tips should be in W-2 Box 12 code TP (starting 2026). If your hotel lumps them together, ask for a corrected W-2 (W-2c). Your §224 deduction only covers voluntary tips.
What about a guest sending a $200 thank-you envelope after checkout?
Voluntary tips from grateful guests fully qualify — including post-stay cash or check tips. Log the amount and date when you received it. Repeat luxury guests often send substantial post-stay tips; those are §224 qualified.
I got a bottle of wine as a thank-you. Does that count?
Non-monetary tips do not qualify under §224. The Final Regulations require the tip be paid in cash or cash-equivalent (card, check, app). Bottles of wine, restaurant gift cards, and non-cash gifts are not deductible — enjoy them but do not report them as qualifying tip income.
Related occupations
- Servers
- Bartenders
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- Hairstylists
- Delivery drivers
- Baristas
- Food runners
- Hosts
- Bussers
- Sommeliers
- Banquet servers
- Cocktail servers
- Room-service attendants
- Barbers
- Manicurists
- Estheticians
- Massage therapists
- Tattoo artists
- Personal trainers
- Spa attendants
- Taxi drivers
- Valets
- Shuttle drivers
- Movers
- Bike couriers
- Bellhops
- Doormans
- Hotel housekeepers
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- Recreational guides
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- Musicians
- Event staff members
- Coat-check attendants
- Home cleaners
- Plumbers
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- Electricians
- Pest-control technicians
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- Pet groomers
- Dog walkers
- Tailors
- Shoeshine attendants
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Track every shift
The deduction is real money — if you can prove your tips.
Qualified Tips logs each shift the moment it ends — timestamped, exportable, IRS-aligned.