June 17, 2025

Frontline Workers Speak Out: 83% Support “No Tax on Tips” Policy

By Ksenia Steidel

By Ksenia Steidel

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Author: Monique Crapper is a marketing strategist and copywriter with over 15 years of experience helping fintech brands grow and connect with their audiences. Known for combining data-backed strategy with authentic, human-centered storytelling, Monique crafts content that not only informs but also inspires action. Her work turns complex financial topics into engaging, accessible narratives that resonate with real people.

income tax on tips

What do restaurant workers really think about the proposed No Tax on Tips policy? We asked them.

Instant surveyed 571 hourly workers — the majority in food and beverage service and hospitality — and the results were loud and clear: 83% support removing federal income tax on tips. Only 4% were opposed.

Why the overwhelming support? Because for many tipped workers, tips aren’t just a bonus — they’re the money used to pay rent, buy groceries, keep the lights on, and gas up the car. As our CEO, Tal Clark, shared in Fast Casual, “tips are a lifeline” for workers who are already navigating paycheck-to-paycheck realities.

Among the findings from our survey:

  • More than 80% of respondents use their tips and early wages for essentials.
  • 70% say they’d be financially unstable without access to their pay before payday.
  • The median weekly take-home pay is just $400, highlighting how thin the margins are.
  • 70% expressed concern about inflation and rising costs.

These aren’t abstract policy conversations for frontline workers — they’re real-world stakes. The common perception is that by removing taxes on tips, workers could have more money for groceries and gas and less debt hanging over their heads.

Employers in fast casual and QSR: the people powering your business are paying close attention. Supporting flexible pay options, digital tips, and stronger take-home pay isn’t just good policy — it’s good business.

👉 Read the full report

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