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  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

OysterLink Study: "No Tax on Tips" Could Boost Hospitality Workers' Pay by $10K-$20K Annually

By: Newsfile

New York, New York--(Newsfile Corp. - September 15, 2025) - Restaurant and hospitality job platform, OysterLink, has released a new analysis showing how the proposed "No Tax on Tips" policy could reshape pay for millions of restaurant and hotel workers. Based on wage data from the U.S. Bureau of Labor Statistics (BLS) combined with industry tipping estimates, the study finds that servers, bartenders, and other tipped employees could see an effective increase of $10,000-$20,000 in take-home pay annually if tips were no longer subject to federal income tax.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10722/266457_21780b8ac4b90a33_001.jpg

Hospitality Workers Could See $10K-$20K More Per Year Under "No Tax on Tops"

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Tips: A Major Piece of Take-Home Pay

According to the BLS, the median annual wage for bartenders is $39,880. However, this figure often excludes tips, which can add another $10,000-$20,000 per year depending on venue, shift volume, and clientele. Servers, too, typically earn $29,120 in wages but take home much more once tips are factored in.

The proposed deduction would allow workers to keep nearly all of personal tips instead of paying federal income tax on them — effectively giving many hospitality employees a raise without additional labor costs for employers.

Role-by-Role Impact of "No Tax on Tips"

OysterLink's study layers industry-standard tip estimates on top of BLS-reported wages to illustrate the potential take-home impact across key hospitality jobs:

Job TitleAverage Annual
Salary (BLS)
Estimated TipsPotential Total
Take-Home Pay*
Bartender$39,880$10,000-$20,000$49,880-$59,880
Server/Waitstaff$29,120$8,000-$15,000$37,120-$44,120
Barback$31,010$5,000-$8,000$36,010-$39,010
Valet Attendant$28,680$3,000-$6,000$31,680-$34,680
Bellhop$27,200$4,000-$7,000$31,200-$34,200
Concierge$38,490$2,000-$5,000$40,490-$43,490

 

Why It Matters

Tipped workers make up a significant share of the U.S. hospitality workforce, and many rely on gratuities to bridge the gap between base wages and cost of living. With turnover already among the highest of any industry, OysterLink notes that a tax-free tip policy could improve retention, morale, and financial stability for millions of workers while making restaurant and hotel jobs more competitive.

About OysterLink 

OysterLink is a job platform for restaurant and hospitality professionals with over 400,000 monthly visitors. OysterLink connects talent with opportunities across the U.S., including the top server jobs in New York City or bartender jobs in Los Angeles.        

The platform also offers trend reports, expert insights, and interviews with leaders in hospitality. To explore more data-driven insights or post a job that works for today's talent, visit www.oysterlink.com.    

Media Contact    

Ana Demidova    
ana@oysterlink.com      

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/266457

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