Taxation
What we model.
A thank-you is income. What the law makes of it differs from one country to the next, and a platform that ignores this leaves its employees to find out alone. Here, jurisdiction by jurisdiction, is the rule our engine applies, with its reference and the sentence the employee reads in their own space.
Regimes in force in 2026.
France
What the employee reads
As long as your monthly pay excluding thank-yous stays at or below the threshold of 1.6 times the minimum wage (SMIC), your thank-yous are exempt from income tax and social security contributions until 31 December 2028. Report their total in the dedicated box on your tax return; months above the threshold follow the standard regime.
- Reference
- French Finance Act 2026, art. 5; minimum wage (SMIC) uprating of 1 June 2026
- Threshold
- €2,987.23 on monthly pay, excluding thank-yous
- Until
- 31 December 2028
Spain
What the employee reads
These thank-yous are employment income (rendimiento del trabajo) subject to IRPF: report them on your income tax return, in the box (casilla) for rendimientos del trabajo. They remain outside the Social Security (Seguridad Social) contribution base, as a non-wage (extrasalarial) item (Supreme Court ruling STS of 17 June 2021).
- Reference
- Art. 17.1 Ley 35/2006 (IRPF); extra-salary, outside the social security contribution base (Supreme Court ruling of 17 June 2021)
- Threshold
- No threshold: the rule applies to any amount.
United States
What the employee reads
These thank-yous may be deducted for federal income tax purposes, up to 25 000 USD per year until the end of 2028; FICA still applies. Keep a record and report them on your return.
- Reference
- OBBBA (4 July 2025), federal deduction capped at USD 25,000 per year, from 2025 to 2028; FICA still due
- Threshold
- US$25,000.00 annual deduction cap, on the thank-yous themselves
- Until
- 31 December 2028
United Kingdom
What the employee reads
These thank-yous are liable to income tax and you must report them yourself through Self Assessment; no National Insurance is due.
- Reference
- Direct thank-yous fall outside the scope of the Employment (Allocation of Tips) Act 2023 (Code of Practice, para 13); income tax through self-assessment; no National Insurance contributions (HMRC E24)
- Threshold
- No threshold: the rule applies to any amount.
Italy
What the employee reads
A 5% substitute tax (imposta sostitutiva) applies to these thank-yous; report them on your tax return.
- Reference
- Imposta sostitutiva of 5% (Law 197/2022 as amended by Law 207/2024), for incomes up to EUR 75,000 per year
- Threshold
- €6,250.00 on monthly pay, excluding thank-yous
Greece
What the employee reads
Your thank-yous are exempt from income tax up to EUR 300 per month, whether paid to you directly or through the property. Above that amount, the excess is added to your taxable employment income. Social security contributions, however, are due on none of it, whatever the total.
- Reference
- Income tax exemption up to EUR 300 per month on thank-yous received from guests, directly or through the property (art. 5 of Law 5162/2024, art. 14 para. 2 point ib of the Greek Income Tax Code); social security contributions exempt whatever the amount (art. 11)
- Threshold
- €300.00 on the thank-yous themselves
What we do not model
What serves a legal department most is not the list of what we know, but the list of what we do not. Here it is, unretouched.
Countries outside this list
A property may open in a country the engine does not model. Its employee then reads that they must declare their thank-yous and enquire with their tax authority: no legal reference is cited to them, because we have verified none.
Italy, approximated by the month
The Italian threshold is annual; we compare it month by month against the pay we are given. The exact rule looks at the previous year's income and includes an allowance. The gap is written into our code, and this approximation is still to be refined with an Italian tax specialist.
The United States above 150,000 dollars
The federal deduction phases out above that income. We do not model that phase-out: beyond it, the deduction belongs to the employee's tax return, not to our classification.
Announced reforms not yet passed
We apply a rule only once it is published. A Greek reform announced in July 2026 would raise the cap and make it annual: it is not in the engine, and it will not enter before official publication.
The tax calculation itself
The engine CLASSIFIES a month: a status, a threshold, a reference. It computes no amount of tax or contributions, and withholds nothing: no sum is ever taken out of a thank-you, neither by the property nor by us.
General information, not individualised tax advice.
A question about your jurisdiction?
Write to us: we answer with the rule we apply, or we tell you that we do not model it.
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