Influencers set to win big from Trump's 'no tax on tips' policy
Small-time content creators could win big
Influencers set to strike gold under President Trump's 'no tax on tips' policy.
While many residents are worried about how the US tariffs might affect tech prices and gaming costs, among other industries, there's one group that's about to get a nice financial break.
What is the new policy?
Donald Trump's 'no tax on tips' policy isn't just helping restaurant servers. Streamers, YouTubers, and other digital creators may have the chance to write off up to $25,000 in tips on their 2025 taxes.
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The POTUS made eliminating taxation on tips a key campaign promise in 2024, and Congress delivered by signing it into law as part of the 'Big Beautiful Bill' in July 2025.
This law allows workers in fields that 'customarily and regularly' receive tips to deduct up to $25,000 worth of tip income from their taxes.
However, there is a catch. This policy won't apply if creators are taking home more than $150K a year.
Who qualifies for the policy?
A US Treasury spokesperson confirmed to Business Insider that influencers definitely qualify for this break.
They defined eligible influencers as: people who 'produce and publish on digital platforms original entertainment or personality-driven content, such as live streams, short-form videos, or podcasts.'
That means smaller content creators across platforms like Twitch, YouTube, TikTok, Instagram, and podcast platforms could all benefit from the bill.
However, the mega-influencers making millions won't get to use this write-off. The likes of self-made billionaire MrBeast and internet personality Jake Paul, your bank accounts are already doing just fine.
What counts as 'tips' in the digital world?
Well, unlike traditional physical tips you see handed out in a restaurant or a bar, viewers can support their favourite creators through things like subscriptions, virtual currency (like Twitch's 'bits' or TikTok's 'gifts'), direct donations, and special paid messages like YouTube's SuperChats.
These digital 'tips' can actually make up a pretty hefty chunk of a creator's income, though most influencers still make their biggest money through brand deals and advertising partnerships.
Content creators can start making use of the deduction as early as their 2025 taxes, meaning that they can begin recording their tips from this year forward.
Who will benefit from the new bill?
The biggest winners will be mid-tier influencers and smaller streamers who rely heavily on viewer donations but haven't yet reached the $150,000 income threshold. For creators pulling in $50,000-$100,000 annually with a good portion coming from tips, this could represent substantial tax savings.
The policy is currently set to run through 2028, giving creators at least three solid years to benefit from the tax break. After that, it's up to Congress whether they choose to extend the bill or make it permanent.