IRS Home Services (TTOC)
Do plumbers qualify for the No Tax on Tips deduction?
Residential service plumbers appear on the IRS Treasury Tipped Occupation Code list under home services — a fact that surprises the trade, because plumbing has never been tip-dependent. But homeowner tips are real: the $20 handed over after an emergency water-heater fix, the cash tip for coming out at 11 pm. Those are qualified tips. What is NOT a tip: your service-call fee, your hourly rate, and every line item on the invoice. For most plumbers the annual number is small — but if you run emergency calls, it adds up, and it is deductible now.
Short answer
Yes — residential-service plumbers doing tip-customary work are on the IRS TTOC list. Voluntary tips homeowners hand you qualify for the federal No Tax on Tips deduction. Invoice amounts, service-call fees, and parts markup are business revenue, not tips. W-2 shop plumbers log tips against wages; self-employed plumbers are capped at net Schedule C income.
How much could you save?
Typical tip income for plumbers.
Plumber tip income is modest but real: most residential techs report $500-$3,000/year. Emergency and after-hours specialists see the most ($2,000-$5,000) because grateful homeowners at midnight tip generously. Commercial and new-construction plumbers see almost none — this is a residential-service phenomenon.
For plumbers specifically
What counts as a qualified tip — and what doesn't.
✓ Qualifies
- Cash tips homeowners hand you after a service call
- Voluntary tips added on card payment when your invoicing app offers a tip line
- After-hours and emergency-call appreciation tips
- Holiday tips from regular maintenance customers
✗ Does not qualify
- Service-call fees, hourly labor, or flat-rate job pricing (invoice revenue)
- Parts markup or materials charges
- After-hours surcharge YOU bill (your fee, not a customer gift)
- Referral bonuses from your shop or supply-house spiffs
- Membership-plan revenue (maintenance contracts)
A worked example
Gus, a real-world plumber.
Gus is a residential service plumber running emergency calls, W-2 at a local shop, married filing jointly, MAGI $88,000. For the tax year, she logged $2,400 in qualified tips (mostly after-hours emergency calls). She sits in the 22% federal marginal bracket.
- Deduction allowed: Full $2,400 deduction
- Estimated savings: About $528 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 plumbers
What other plumbers ask.
A homeowner tipped me $50 after I fixed a burst pipe at midnight. Qualified?
Yes. That is a voluntary tip for service in a TTOC-listed role — exactly what §224 covers. Log it that night: date, job type, amount. Emergency-call tips are the bulk of most plumbers' qualified income.
I charge a $95 after-hours fee. Is that like a tip since it is for the inconvenience?
No. A fee you set and bill is your revenue — the customer had to pay it to get service. Only money the customer voluntarily adds beyond your invoice qualifies as a tip.
Is it even worth tracking $1,500 a year in tips?
At the 22% bracket, $1,500 deducted saves about $330 in federal tax — for maybe 10 seconds of logging after the occasional job. It is the easiest $330 in the trade.
I own my shop (Schedule C). Does the deduction still work?
Yes — self-employed plumbers in tip-customary residential work qualify, with the §224 SE cap: your tip deduction cannot exceed net self-employment income from the work. For a profitable shop that cap is rarely binding. One caveat: if your business classifies as an SSTB (unusual for plumbing), the exclusion could apply — confirm with your CPA.
Related occupations
- Servers
- Bartenders
- Rideshare drivers
- 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
- Concierges
- Doormans
- Hotel housekeepers
- Casino dealers
- Golf caddys
- Tour guides
- Sports instructors
- Recreational guides
- Stable hands
- Musicians
- Event staff members
- Coat-check attendants
- Home cleaners
- HVAC technicians
- Electricians
- Pest-control technicians
- Locksmiths
- Appliance delivery and installation workers
- Pet groomers
- Dog walkers
- Tailors
- Shoeshine attendants
- Personal shoppers
- Wedding planners
- Funeral attendants
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.