The No Tax on Tips Act is being celebrated by some in the service industries, but there are several key details massage therapists need to understand before assuming it's a tax-free free-for-all.

Massage therapists often receive tips—especially those working in spas, franchises, hotels, and even private practice. This bill recognizes tipping as a customary part of compensation in “beauty service” roles, which includes body and spa treatments.

So YES—massage therapists qualify for this tax break if:

• They receive tips reported to their employer (or themselves, if self-employed).
• Their total tips are within the $25,000 annual deduction limit.

But the story doesn't end there. Listen to learn more about the nuance behind how this bill ACTUALLY works.