Liam Cahill's side went down 1-20 to 1-17 in a play-off match at Walsh Park – the first time the Deise have beaten the Premier County in this grade since 2011.
The loss means that Tipp will now face Clare in a winner-takes-all encounter in Ennis early next month.
Lyndon Fairbrother was top scorer for the losers with 0-10, 0-7 of which came from frees with 0-2 being 65s.
The victors were inspired by a similarly prolific display from Eoghan Murray, who got 0-11.
