Replace Your Salary With Tax-Free Tips? 7 Tippable Jobs That Could Pay You More
Written by
Brooke Barley
Edited by
Cory Dudak
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One connection point between the Republican and Democratic nominees for president is that they both want to eliminate taxes on tips. During a rally in Las Vegas, former President Trump first voiced his support for getting rid of taxes on tips first in June. Kamala Harris echoed the same message — also in Las Vegas — during a rally in early August.
It’s a policy that many service workers would love to see, and it has salaried workers asking questions. Would a tipped job actually pay better than some salary positions if there were no taxes on tips? Which jobs would those be? GOBankingRates asked experts for answers. Also take a look at how you can earn passive income.
Restaurant Workers
“The restaurant and beverage industry is one that would definitely gain from the removal of tip taxes,” Frank Lee, CEO and founder of XMAKE, explained. Lee went on to discuss how some states like Texas only pay tipped workers $2.13 an hour, so long as their tips at least bring that hourly amount up to the federal minimum wage. “These employees’ take-home compensation may rise significantly as a result of tip tax elimination, improving the stability and satisfaction of their employment.”
James Allsopp, CEO of iNet Ventures, said eliminating taxes on tips could be especially lucrative for servers working in more high-end restaurants. “In upscale restaurants, skilled bartenders and servers can often make very large amounts of money in tips. These jobs could easily pay more than mid-level salaried positions in cities where people tip well.”
Casino Dealers and Croupiers
There is a reason why both Trump and Harris announced their support for tax-free tips in Vegas. Sin City has a ton of workers who would directly benefit from this — especially those working in the casinos.
“Casino dealers working at high-end resorts or in bustling gaming cities like Las Vegas and Atlantic City could experience significant pay boosts,” said Alex Johnson, a certified financial planner and executive leader at Man and Van Star. “Dealers often receive substantial tips from big-spending gamblers, sometimes amounting to hundreds per shift. Without taxes, their net income could rival mid-to-high-level corporate roles, especially during peak tourism seasons or high-roller events. High rollers often tip based on their winnings, and tax-free tips could see dealers in prestigious casinos earning more than financial analysts or engineers.”
Private Chauffeurs
Shuttle drivers to the stars could see their wages go way up with tax-free tips. “Working in cities with a wealthier clientele, such as Los Angeles or New York, private chauffeurs are often tipped generously, especially during events like weddings, celebrity tours, or VIP transport,” Johnson said. “Eliminating taxes on these tips would drastically increase their yearly earnings, putting them on par with managers in more traditional sectors like retail or logistics.”
Luxury Yacht Crew Members
If you’ve seen shows like “Below Deck,” you know that the crew lives for the tips. Now, they’d get to keep even more of that cash and make as much as someone working in tech. “Crew members on superyachts typically receive a gratuity of 5-15% of the charter cost, which, tax-free, could translate into tens of thousands per trip,” Johnson explained. “Crewing on luxury yachts, especially in hotspots like Miami or the Mediterranean, already brings in high tips from wealthy guests. When taxes are eliminated, yacht crew members — who are often tipped handsomely for multi-day charters — could see their incomes surpass office-based project managers or mid-level tech employees.”
Event Planners and Caterers
Working at big events often brings in big tips. Johnson said event planners and caterers could see an income rivaling those closing sales deals. “In elite wedding or corporate events, caterers and event planners often receive large tips for their services. Removing the tax from these earnings could significantly elevate their pay, making these professions more lucrative than some salaried marketing or sales jobs.”
Tour Guides
Those who show tourists around in vacation destinations might see a big bump in their pay if they don’t have to pay taxes on tips. “In places that are popular among tourists, guides can sometimes bring in a lot of money during peak seasons thanks to tips,” Allsopp said. “If you eliminate taxes on those tips, being a guide might start to seem like a better paid job than many traditional salaried positions.”
Personal Care Workers
Those who work to make us look good could also see a big wage increase. “Another job that could see a significant boost is in the personal care industry, such as hairstylists, nail technicians, and massage therapists,” Josh Bolstad, CEO of Niche Ranker, explained. “Many professionals in these roles already receive substantial tips, especially in upscale or urban areas. Without the tax burden on tips, I believe these jobs could become even more lucrative, potentially attracting talent that might otherwise pursue traditional salary-based careers.”
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