LOS ANGELES — A key provision in the One BigBeautiful Bill Act, a sweeping tax reform measure championed by former U.S. President Donald Trump during his 2024 election campaign, may bring unexpected financial benefits to digital influencers and adult content creators.
According to Quartz, the bill adopted in July 2025includes a “no tax on tips” provision that could allow qualifying workers to deduct up to $25,000 in tip income from federal taxes through2028.
What the Tax Break Means
Originally intended for restaurant and hospitality workers, the provision’s language appears broad enough to extend to online personalities, including those who earn tips on fan platforms and premium content sites.
Income Thresholds
- Single Filers: Up to $150,000–$160,000 annual income.
- Married/Joint Filers: Up to $300,000 annual income.
The benefit phases out for higher earners, with partial deductions available for individuals making above $400,000 per year.
Advocates say the measure could be “transformative” for creators who rely on tip-based income.
Potential Impact on the Creator Economy
Daniel Abas, President of the Creators Guild of America, told Bloomberg the tax break could have a “very strong economic impact, particularly for those early in their careers.”
A 2024 study by Creative Class Group, cited by Quartz, found that over 25% of large U.S.-based influencers reported tip income. The report suggested that this tax change could reshape compensation structures, making gratuities even more central to creators’ earnings.
Legal Uncertainty for the Adult Industry
While the measure could benefit online creators, questions remain about whether adult industry professionals will be fully included.
Nate Mallory, a Texas attorney specializing in tax law and wealth management at The Mallory Firm, voiced concerns to AVN News:
“What remains unclear and legally problematic is whether sex workers and adult industry professionals will be included in the final qualifying occupations list. A significant part of this industry operates on a tip-based model, from exotic dancers to cam performers to escort services, which are legally operating.
Mallory warns that excluding adult professionals could create constitutional challenges, arguing that tax policy should be based on economics, not moral judgments:
“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 could violate Equal Protection principles and would be counterintuitive to the core function of the IRS: to generate and collect tax revenue for the federal budget.”
Key Takeaways
- Up to $25,000 in tip income deductions through 2028 for qualifying earners.
- Initially intended for service industry workers, but wording could include online creators and adult performers.
- Income limits: Up to $160,000 (single) or $300,000 (joint filers), partial benefit above $400,000.
- Legal experts urge clarity to ensure sex workers and adult entertainers are not excluded.
What this means for creators:
As the IRS develops guidelines for the new tax law, online influencers, sex workers and adult creators should stay informed and consult with qualified tax professionals to understand how these changes might impact their income.
👉 For more updates on digital creator economic trends and tax policy changes, visit AVN.com.
