President Donald Trump’s recent “no tax on tips” law is giving an unexpected windfall to digital content creators.
Part of the broader “Big Beautiful Bill” passed in July, the provisions allow qualifying workers to deduct up to $25,000 in tip income from their federal taxes through 2028. While pitched primarily at restaurant servers and hospitality workers, the measure apparently gives a boost to online personalities who rely on direct contributions from their audiences.
The move recognizes how modern content creators rely on direct audience tipping, just like a waiter getting a cash tip. The Treasury Department's list of qualifying occupations includes podcasters, social media influencers, streamers, and other digital content creators. These roles fall under categories like “Entertainment & Events,” stretching beyond traditional occupations.
A 2024 study by the Creative Class Group found that more than a quarter of large U.S.-based influencers — those with 100,000 followers or more — reported receiving tips. “This could change the compensation structure of the industry in ways that make gratuities even more central,” the report noted.
The provision targets individuals earning below income thresholds — single filers up to roughly $150,000–$160,000, and married filers up to $300,000 — after which the benefit phases out. Proponents of the change say it could be transformative for creators who are still building an audience.
“It will have a very strong economic impact, particularly for those early in their careers,” Daniel Abas, president of the nonprofit Creators Guild of America, told Bloomberg. Most creators earn below the threshold, she adds. Some higher earners — up to about $400,000 annually — can also claim a partial deduction.
Adult entertainment creators may see the largest boost, with those on platforms such as OnlyFans depending heavily on tipping. Katherine Studley, a tax preparer who represents adult performers, told Bloomberg that the exemption is “a huge win” for her clients. The move was an unexpected move from a Republican administration, said Studley, as it typically embraces social conservatism. What’s more, it isn’t cheap. The nonpartisan Congressional Budget Office (CBO) projects the provision would increase the deficit by $40 billion through 2028, while the Joint Committee on Taxation, also nonpartisan, estimates that the deduction will cost $32 billion over the next decade.
'New media voices'
Yet, the decision to cover digital creators reflects the growing political currency of the influencer class. Both Trump and Democratic challenger Kamala Harris courted online personalities during the 2024 election, speaking on mainstream podcasts and making TikTok content.
When Trump took office in January, the White House announced it would open press briefings to “new media voices,” content creators, and podcasters. Within just 24 hours, more than 7,400 influencers applied for press credentials, Bloomberg reported.
However, creators may bundle special content or perks with fan payments, blurring whether those transactions qualify. That means defining a “tip” in the digital world can be a "thorny issue,” Alex Muresianu of the Tax Foundation said to Bloomberg.
On YouTube, tips are known as "Super Chats”, features that allow viewers to “purchase live chat messages that stand out and sometimes pin them to the top of a live chat feed,” according to parent company Google. Twitch streamers receive a virtual currency called "bits” that viewers purchase to “cheer” on streamers, which creates an animated emote in chat, showing support and celebrating moments. On TikTok, users buy “Gifts” using TikTok Coins during live streams or on video posts. These virtual items appear on screen as animated emojis. All of these features qualify as tips under the law, according to Business Insider.
However, other cases are less clear. On OnlyFans, for example, creators offer customized content and one-to-one chatting via so-called “tip menus.” For podcasters, tips may come in the form of direct donations, but most often they post bonus content on crowdfunding platforms like Patreon.
Creators might restructure pay models accordingly, added Muresianu. Accountant Studley said some of the adult creators she works with have already consulted with her about how to navigate the law.
Income inequality dipped, more people had college degrees, fewer people moved to a different home, and the share of Asian and Hispanic residents increased in the United States last year, according to figures released Thursday by the U.S. Census Bureau.
These year-to-year changes, big and small, from 2023 to 2024 were captured in the bureau’s data from the American Community Survey, the largest annual audit of American life. The survey of 3.5 million households asks about more than 40 topics, including income, housing costs, veteran status, computer use, commuting, and education.
Here’s a look at how the United States changed last year.
Income inequality dips
Income inequality — or the gap between the highest and lowest earners — in the United States fell nationwide by nearly a half percent from 2023 to 2024, as median household income rose slightly, from $80,002 to $81,604.
Five Midwestern states — Iowa, Nebraska, Ohio, South Dakota, and Wisconsin — had statistically significant dips, along with Georgia, Massachusetts, New Jersey, Oregon, and Puerto Rico.
North Carolina was the only state to see a statistically significant rise in inequality. North Carolina State economist Michael Walden said it reflected the state generating high-paying jobs in tech and other professional sectors, while the post-pandemic labor shortage, which raised wages in lower-paying service jobs, had ended.
In South Dakota, which had a leading 4% drop, the inequality dip “could reflect stronger growth in the household income among lower and middle income households (or smaller growth in the income of the highest brackets),” state demographer Weiwei Zhang said Wednesday in an email.
In Nebraska, it could be high employment rates across all demographic groups since “high employment leads to income, thus less income inequality,” said Josie Schafer, director of the Center for Public Affairs Research at the University of Nebraska Omaha.
In Massachusetts, one of the traditional strengths of the state’s economy — high-paying jobs in life science, high tech, and research — has been sluggish in the past two years, said Mark Melnik, director of economic and public policy research at a University of Massachusetts Amherst institute.
“The typical jobs in this industry are the kind of thing that helps Massachusetts have the highest per capita income in the country, but also exacerbates some elements of income inequality,” Melnik said.
Greater diversity and fewer people are married
The United States became more demographically diverse, and fewer people were married from 2023 to 2024.
The non-Hispanic white population, who identify with only a single race, dropped from 57.1% to 56.3%, while the share of the nation’s Asian population rose from 6% to 6.3% and the Hispanic population rose from 19.4% to 20%. The rate of the Black population stayed the same at 12.1%, as did the American Indian Alaska Native alone population at 1%.
In the marriage department, the share of men who have never married increased from 37.2% to 37.6%, and it rose from 31.6% to 32.1% for women.
Fewer people moved, as the costs of renting and owning homes rose
Last year, only 11% of U.S. residents moved to another home, compared to 11.3% in the previous year. The decline of people moving this decade has been part of a continuous slide as home prices have skyrocketed in some metros and interest rates have gone up. In 2019, by comparison, 13.7% of U.S. residents moved.
The monthly costs for U.S. homeowners with a mortgage rose to $2,035 from $1,960. Homeowners with a mortgage in California ($3,001), Hawaii ($2,937), New Jersey ($2,797), Massachusetts ($2,755), and the District of Columbia ($3,181) had the highest median monthly costs.
Costs for renters also increased as the median rent with utilities went from $1,448 to $1,487.