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You Make the Call - Sept. 25, 2025

Published:
By: NATP Staff
Tattoo artists often receive tips, but under §70201 (“No Tax on Tips”) of the One Big Beautiful Bill Act, their services are classified as health services and excluded from the deduction. Learn why tattoo artists’ tips don’t qualify and how this impacts tax reporting.

Question: Bethany is a tattoo artist who regularly receives tips from clients in addition to set service charges. Under §70201 (“No Tax on Tips”) of the One Big Beautiful Bill Act (OBBBA), are these tips eligible for the deduction?

Answer: No. Bethany's services fall under tattoo services, which are categorized as health services in many regulatory frameworks (state and local health departments classify them as body art/health services). These services are explicitly excluded from the occupations covered by §70201. Therefore, even though tattoo artists consistently receive tips like bartenders or hair stylists, their work is categorized as a health service, which is not eligible for the §70201 deduction.

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"NATP team committed to supporting tax professionals with expert insights, industry updates, and resources, shown with green triangle design element representing the organization's brand.

NATP Staff

The NATP team is dedicated to supporting tax professionals with expert insights, industry updates, and resources that help them serve their clients with confidence.

Information included in this article is accurate as of the publication date. This post does not reflect tax law changes or IRS guidance that may have occurred after the publishing date.