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Replace your salary with tax-free tips? 7 jobs that allow tipping and could earn you more
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Replace your salary with tax-free tips? 7 jobs that allow tipping and could earn you more

Steve Debenport/Getty Images/iStockphoto

Steve Debenport/Getty Images/iStockphoto

One thing the Republican and Democratic presidential candidates have in common is that both want to eliminate taxes on tips. Former President Trump first spoke out in favor of eliminating taxes on tips at a rally in Las Vegas in June. Kamala Harris repeated the same message – also in Las Vegas – at a rally in early August.

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Many service employees would like this regulation, and employees are asking themselves questions. Would a tipped job actually pay better than some permanent employees if tips were not taxed? What jobs would these be? GOBankingRates asked experts for answers. Also see how you can earn passive income.

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Restaurant staff

“The food and beverage industry would definitely benefit from the elimination of the tip tax,” said Frank Lee, CEO and founder of XMAKE. Lee went on to explain that some states, such as Texas, pay their employees as little as $2.13 per hour, as long as their tips bring that hourly amount to at least the federal minimum wage. “The take-home pay of these employees could increase significantly with the elimination of the tip tax, improving their employment stability and satisfaction.”

James Allsopp, CEO of iNet Ventures, said the elimination of the tip tax could be particularly lucrative for servers in more upscale restaurants. “In upscale restaurants, experienced bartenders and servers can often earn very high tips. In cities where people tip a lot, these jobs could easily pay more than mid-level positions.”

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Casino dealers and croupiers

There’s a reason both Trump and Harris have announced their support for tax-free tips in Las Vegas. Sin City has a lot of workers who would directly benefit from it – especially those who work in the casinos.

“Casino dealers working at luxury resorts or in busy gambling cities like Las Vegas and Atlantic City could receive significant raises,” said Alex Johnson, a certified financial planner and executive at Man and Van Star. “Dealers often receive sizable tips from big-spending gamblers, sometimes amounting to several hundred dollars per shift. Without taxes, their net income could rival that of mid- to high-level corporate positions, especially during peak tourism season or high-roller events. High rollers often tip based on their winnings, and tax-free tips could result in dealers at prestigious casinos earning more than financial analysts or engineers.”

Private chauffeur

Shuttle drivers to the stars could earn significantly more with tax-free tips. “In cities with wealthier clientele, such as Los Angeles or New York, private chauffeurs often receive generous tips, especially at events such as weddings, celebrity tours or VIP transportation,” said Johnson. “Eliminating taxes on these tips would dramatically increase their annual income and put them on a par with managers in more traditional industries such as retail or logistics.”

Crew members for luxury yachts

Anyone who has watched shows like Below Deck knows that crew live for the tips. Now they could keep even more of that money and earn as much as someone working in the technology industry. “Crew members on superyachts typically receive tips of 5-15% of the charter cost, which could amount to tens of thousands per trip tax-free,” Johnson explained. “Crew members on luxury yachts, particularly in hotspots like Miami or the Mediterranean, already receive large tips from wealthy guests. If taxes are eliminated, the incomes of yacht crew members – who often receive generous tips for multi-day charters – could surpass that of office project managers or mid-level tech staff.”

Event planners and caterers

Working at large events often brings high tips. Johnson said event planners and caterers can earn income that rivals closing sales deals. “At elite weddings or corporate events, caterers and event planners often receive high tips for their services. Eliminating the tax on these earnings could significantly increase their salaries and make these occupations more lucrative than some salaried marketing or sales jobs.”

Tour guide

Those who guide tourists in vacation areas may be able to secure a big pay increase if they don’t have to pay taxes on tips. “In places that are popular with tourists, tour guides can sometimes make a lot of money during peak season thanks to tips,” Allsopp said. “If you remove taxes on those tips, tour guiding may seem like a better-paying job than many traditional white-collar jobs.”

Employees in personal care

Those who make us look good could also get a big pay raise. “Another profession that could see a significant boost is the personal care industry, such as hair stylists, nail technicians and massage therapists,” explained Josh Bolstad, CEO of Niche Ranker. “Many professionals in these professions already receive significant tips, especially in upscale or urban areas. Without the tax burden on tips, I think these jobs could become even more lucrative, potentially attracting talent that would otherwise pursue traditional payroll-based careers.”

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This article originally appeared on GOBankingRates.com: Replace your salary with tax-free tips? 7 tip-allowed jobs that could pay you more

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