LAS VEGAS (KTNV) — President Donald Trump is expected to visit Las Vegas this week, where he’ll highlight his “no tax on tips” policy — a key part of his economic agenda that is already in effect.
The visit comes during Tax Week and puts a spotlight on a policy with particular relevance in Southern Nevada, where thousands of workers in the hospitality industry earn a significant portion of their income through tips.
Alyssa Bethencourt hears from a local business owner about the impact of "no tax on tips":
At Pinches Tacos, owner Javier Anaya says tipping has always been essential for workers trying to make ends meet.
“As a server, as a bartender, making minimum wage is hard,” Anaya said.
Anaya, who has spent decades in the restaurant industry and has owned his current location at the Gramercy in the southwest valley for more than 10 years, says the economics of tipping have shifted over time.
“It’s changed so much. Now, your tips don’t go as far,” he said.
Despite its name, the “no tax on tips” policy does not eliminate all taxes on tips.
Instead, it allows eligible workers to deduct a portion of their tip income from their federal taxes, reducing what they owe. The deduction is capped up to $25,000 annually and phases out for higher-income earners. Payroll taxes, including Social Security and Medicare, still apply.
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Brad Zucker, a financial expert with SMA Wealth Management, says the change can still make a noticeable difference.
“Lowering income lowers taxes,” Zucker said. “So if you withhold less money, you actually have more spendable income through the year.”
For some workers, the benefit is straightforward: more take-home pay.
“Not being taxed on tips means what? Being able — instead of having 75 cents, have a dollar. It goes a long way,” Anaya said.
But he says the impact hasn’t been the same for everyone.
“It didn’t translate too much, especially dealing with inflation,” he added.
In a city built on hospitality, from restaurants to casinos, the policy touches a wide range of workers. But how much each person benefits can vary depending on income level, filing status, and how much they earn in tips.
For now, the reaction is mixed, with some welcoming the extra breathing room and others waiting to see how much of a difference it really makes.
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Do you have thoughts about the "no tax on tips" policy? Have you seen a bigger tax refund this year? We want to hear from you. Share your thoughts at ktnv.com/letstalk or click on the link below.
