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.
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 Title | Average Annual Salary (BLS) | Estimated Tips | Potential 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
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