Nevada has high share of tipped workers, but ‘no tax on tips’ leaves many skeptical

Saturday, August 9, 2025 11:54 AM
Photo:  By Florian Plag - Flickr: Serve chilled., CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=19085820
  • United States
  • Nevada
  • Isabella Aldrete, Howard Stutz and Eric Neugeboren, The Nevada Independent

One year after then-presidential candidate Donald Trump pledged at a Las Vegas rally to end taxes on tips, the proposal became reality through the megabill passed by House Republicans, potentially affecting thousands of Nevadans who work in the state’s hospitality industry.

The policy, which quickly became a priority for Nevada’s congressional delegation after Trump introduced it last year, would allow tipped workers to deduct up to $25,000 in tips on next year’s tax returns. It’s estimated that more than 5 percent of Nevada workers are tipped — high relative to other states.

But the proposal is not permanent — as many proponents in the Silver State hoped it would be — and instead expires in three years.