Home Tech & AI Trump’s ‘no tax on tips’ law applies to content creators

Trump’s ‘no tax on tips’ law applies to content creators

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President Trump’s Big Beautiful Bill was passed in July, and part of that bill was the new “no tax on tips” law that would allow workers to earn tips and not have to declare them on taxes. The U.S. Treasury released a list of professions that were eligible for this law last week. Somewhat surprisingly, content creators of various types made the list. 

The list mostly includes the stuff you would expect, including bartenders, wait staff, food servers, gambling employees like dealers, dancers (yep, those types), ushers, lobby attendants, bellhops, and entertainers. 

Tucked into the list is “Digital Content Creators,” which the Treasury defines as people who “produce and publish on digital platforms original entertainment or personality-driven content, such as live streams, short-form videos, or podcasts.”

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Comedians, singers, musicians, and DJs are also included. These types of performers are often seen on streaming platforms like Twitch, so this law covers them both. 

There are some caveats to the law. The tax deduction is capped at $25,000 per year, which popular streamers will likely surpass. In addition, the law says that tips can’t be written off if they are received “in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics.” 

Regardless, it will likely change how streamers and content creators make money to ensure they get as close to that $25,000 cap as possible. Tipping, often referred to as “donations,” has been a main revenue driver for content creators, particularly streamers on Twitch and other platforms. Per a study conducted in 2024, 19 percent of large influencers reported receiving tips from their audience across all platforms. That number is likely much higher on streaming platforms on Twitch. 

Since the law incentivizes receiving tips, it’s not a giant leap to assume that this will change how the content creator industry seeks revenue outside of the standard stuff like advertising. As The Hollywood Reporter deftly put it, don’t be surprised if content creators start asking people to like, subscribe, and tip.



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