Trump's 'No Tax on Tips' Law Could Be Boon for Adult Creators

LOS ANGELES—A campaign promise President Donald Trump touted during his general election bid in 2024 could be a windfall for online adult content creators and other digital influencers. Quartz notes that provisions in the One Big Beautiful Bill Act, the name given by Congressional Republicans to the sweeping tax measure as a nod to the controversial president, could offer such a class of workers a break on reporting tips earned from fan sites and other premium content interactions. 

According to the bill that was adopted in July 2025, qualifying workers could theoretically deduct up to $25,000 in tip income from their federal taxes through 2028. The provision was primarily pitched at restaurant servers and hospitality workers. However, the wording in the measure appears to give this boost to online personalities.

Additionally, the provision targets individuals who earn below income thresholds, usually single filers of up to about $150,000-$160,000, and married/joint filers of up to $300,000, after which the benefit phases out. Proponents of the so-called "no tax on tips" provision say it could be "transformative."

Daniel Abas, the president of the Creators Guild of America, shared with Bloomberg via its coverage on the issue that if could have a "very strong economic impact, particularly for those early in their careers." Higher earners, usually above $400,000 annually, could only claim a partial deduction.

An advisory firm, Creative Class Group, conducted a 2024 study that indicates that more than a quarter of large U.S.-based influencers reported tip income.

“This could change the compensation structure of the industry in ways that make gratuities even more central,” that study notes via Quartz's coverage.

Nate Mallory, an attorney from Texas who operates the tax law and wealth management practice The Mallory Firm under the Only Tax Deductions professional services brand, told AVN that creators need to remain wary of the tip provisions.
 
"What remains unclear—and legally problematic—is whether sex workers and adult industry professionals will be included in the final qualifying occupations list," Mallory said. "A significant part of this industry operates on a tip-based model, from exotic dancers to cam performers to escort services, where legally operating."
 
He explained, "These workers customarily and regularly receive gratuities or 'tips.' The exclusion of adult industry workers from tip tax benefits would raise serious constitutional concerns. Such selective application of tax benefits based on moral judgments about certain occupations could violate Equal Protection principles and would be counterintuitive to the core function of the Internal Revenue Service: to generate and collect tax revenue for the federal budget.
 
"Tax policy should be based on economic principles, not moral judgments," Mallory concluded. "As the implementation of this significant tax reform continues, we must ensure that all legally operating, tip-receiving workers receive equal treatment under the law."