On 16 April, US President Donald Trump made a last-minute trip to Las Vegas – his first visit to the Silver State since taking office last January – to tout the success of his “no tax on tips” provision, which was included in his omnibus legislation from last July and took effect for the first time this tax season.
Casino dealers and workers were among the biggest inspirations for the new provision, which runs through 2028 and allows eligible workers to deduct up to $25,000 in tipped income, including casino chips. Trump, who first floated the idea in Las Vegas at a campaign rally in June 2024, has been heavily involved with the gaming and hospitality industries for years.
The 45th and 47th US president previously operated casinos in Atlantic City from the mid-1980s through the early 2000s, and his current Trump Hotels brand operates eight non-gaming resorts, including one in Las Vegas. The impromptu event was not held at Trump Las Vegas, but instead at the non-gaming hotel AC Hotel Las Vegas Symphony Park.
“Thanks to our tax cuts, this week, thousands of Nevada waiters, waitresses, casino dealers, bartenders, bellmen, barbers, caddies – oh, I love those caddies, they’re very good if you have the right caddy – and valets received the biggest tax refunds of their entire lives,” Trump said at the event, per the Nevada Independent. “And I just want to say, ‘You’re welcome.’”
No tax on tips positive but imperfect
The gaming industry has generally not had a warm introduction to Trump’s financial policies thus far in his second term. His tariff spikes have caused uncertainty for suppliers and rattled international travel, the Commodity Futures Trading Commission is embracing prediction markets, and the cap for gambling loss deductions on tax returns was lowered to 90%, a small but significant change for gamblers.
But Trump’s no tax on tips provision is perhaps his biggest benefit to the industry so far, especially for a tourism-reliant economy with many tipped workers like Las Vegas. Its arrival for this year’s tax season is well-timed – visitation declined 7.5% and air traffic declined 6% in 2025 after a record stretch of performance from 2021-2024.
The Culinary Union Local 226 is the most influential labour union in Las Vegas, representing the entire Las Vegas Strip and some 60,000 workers across Nevada. In January, Culinary’s Secretary-Treasurer Ted Pappageorge told iGB the provision would bring “some relief”, but the union has also criticised aspects of the deduction, and protested Trump’s visit last week.
The provision’s temporary status and other pitfalls like the requirement for married couples to split the $25,000 deduction are among the union’s biggest critiques. And politically, Culinary has argued that Trump’s policies and clashes with foreign leaders were a driving force behind the tourism slump that the deduction is now seeking to ease.
“When tourism slumps, Culinary Union members feel it first with less hours, schedule reductions for part‑timers, and layoffs in tipped jobs,” Pappageorge said in a statement on 1 April. “At the same time, the so‑called ‘No Taxes On Tips’ changes are temporary and deeply flawed: They penalise married tip earners, exclude many automatic gratuities, and give permanent tax cuts to billionaires while workers get short‑term relief.”
Proposed bill would overhaul deduction framework
In efforts to address the criticisms, the union has endorsed the TIP Improvement Act, a federal bill filed 13 February by Nevada Representative Steven Horsford.
If passed, the legislation would remove the provision’s temporary status, expand the deduction to $100,000 and more. The bill was immediately referred to the House Committee on Ways and Means, which Horsford sits on, as well as the Committee on Education and Workforce, but has not moved since.
“My bill would make this relief permanent, fix the marriage penalty so families aren’t punished for filing together, allow the use of a verified taxpayer identification number so immigrant workers aren’t excluded, clarify that this deduction belongs to workers, not employers, and protect automatic gratuities,” Horsford said in a statement.
Passage is difficult, as Republicans hold a 217-212 advantage in the House, though there are now five vacancies following the resignation of three representatives this month and the death of Georgia Representative David Scott Tuesday. With 2026 being a mid-term year, elections and party lines are seeping into every aspect of politics, including no tax on tips.
“We got to win the midterms,” Trump said in Las Vegas last week, per the Independent. “If we don’t, these policies are going to be taken away.”
Initial returns appear positive
After a down year in 2025, Las Vegas’ economy appears to be trending positively in 2026. In February, visitation and Strip gaming revenue both posted year-over-year gains for the first time since 2024. According to the Nevada Department of Employment, Training and Rehabilitation, the Las Vegas metro area gained 1,100 jobs in February, and the state gained 1,600 hospitality jobs for the month. Las Vegas’ February jobs total was 25,100 higher than February 2025, per the DETR.
With regard to the new tips policy, the early results also appear positive. In the final days before the 15 April tax cutoff, Nevada taxpayers received average refunds of $4,193, the fourth-highest in the US according to Upgraded Points. The average return for Clark County, which includes Las Vegas, was slightly higher at $4,341.
The federal deduction is not a Nevada-specific benefit. Several other major casino states ranked in top 10 of average refunds, led by Louisiana in fifth. Two others, Mississippi and Illinois, ranked seventh and eighth, respectively. New Jersey placed 14th, with fears of competition from both impending New York City casinos and the growth the of the state’s iGaming industry continuing to build.
Unite Here Local 54, Culinary’s affiliate union in Atlantic City, did not respond to requests for comment.
Jess Marquez
Jess has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.
Original article: https://igamingbusiness.com/casino-games/las-vegas-no-tax-on-tips/
