It’s a tricky time to introduce tax-free tips.

Although a new tax deduction should be welcome news for many waiters, bartenders, and other workers who typically rely on income from tips, there could be unintended negative consequences for both the tippee and the tipper.

For one, it could turbocharge a tipping culture many Americans already feel is out of control. Over the last few years, touchscreen tipping prompts have become ubiquitous when checking out at takeout joints, delis, and coffee houses. Even some pet and thrift stores have them.

The new tax policy “could ignite a whole new level of tipping resentment,” Michelle Singletary, the personal finance columnist at The Washington Post, wrote in a recent column.

Consumers are likely to feel even more pressure and could become more judgmental of the work provided by tipped workers, according to Singletary. At the same time, there will be less incentive for employers to pay a living wage, she wrote.

A quick recap of the new provision, which was approved as part of the One Big Beautiful Bill Act: Between 2025 and 2028, federal taxpayers with occupations that “customarily and regularly” receive tips can deduct up to $25,000 a year in qualifying tips. (The IRS will post a list of eligible occupations by October.) The tax break phases out for workers who earn over $150,000 in adjusted gross income, and the income is still subject to Social Security and Medicare taxes.

To be sure, it’s hard to say how much the new rules will actually affect tipping behavior. According to a report last year from The Budget Lab at Yale, only 4% of families report tips to the IRS, and many of those who do may not earn enough to pay income tax in the first place.

So what? Tipping is an emotionally charged issue. Few, if any, want to stiff a hardworking low-wage waiter or barista, but the number of tipping requests can be overwhelming. If tips are taking a toll on you — financially or otherwise — consider these options:

•  Pay in cash. Those automatic 15%, 20%, 25% tipping prompts pop up when you use a credit card or payment app. There’s a lot less pressure when you pull out cash.

•  Create a tipping budget/plan. It’s exhausting thinking about tips, especially if you have to ask yourself what’s fair every time you make a purchase. Consider creating your own tipping rules ahead of time. Have a standard percentage for each type of business you frequent. (You can always raise it when you get great service.)

•  When you can, DIY. There’s no need to tip when you’re eating at home, trimming your own kid’s hair, or washing your own car. Doing it yourself can help you limit how often you’re presented with a tipping option.

•  Look for other ways to save. Depending on where you live, businesses may pay tipped workers less than the standard minimum wage. If that motivates you to tip, find other places in your budget to cut back instead.

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