Las Vegas’ hospitality workers have seen their income from tips plunge by as much as 50% — despite the recently passed no tax on tips law — as tourism to Sin City takes a hit from President Trump’s global trade war.
Overall visitations to the city are down more than 6% through the first half of the year, with April 2025 recording just over 3.3 million visitors, representing a 5.1% drop from the previous April, according to the Las Vegas Convention and Visitors Authority (LVCVA).
Airport traffic has also decreased, with April passenger traffic at Harry Reid International Airport totaling 4.7 million, down 3.4% from April 2024.
International visitor arrivals fell over 13% in June compared to the previous year, while domestic travel saw a 6.5% decline year-over-year, based on CoStar data.
The overall decline in tourism has hurt service sector workers who were expecting to benefit from Trump’s campaign pledge to eliminate taxes on tips.
The legislation was included in the “Big Beautiful Bill,” signed earlier this month, and exempted up to $25,000 in annual tips from personal income taxes — retroactive to the start of the year.
“No tax on tips, that’s a rad thing. But it doesn’t really do us much good if there isn’t any people to get tips from,” Charlie Mungo, a 36-year-old tattoo artist in downtown Las Vegas, told the Wall Street Journal.
Mungo said he has made about $1,500 a month in recent months.
He added that Canadian customers, who made up about 30% of his clientele, have vanished.
“We’re all starting to freak out,” he told the Journal.
Workers across various sectors report similar income reductions. Jacob Soto, a 22-year-old supervisor at Pinkbox Doughnuts downtown, told the Journal that his weekly credit-card tips dropped from between $175 and $200 to anywhere from $100 to $150.
With his $15-per-hour wage insufficient to cover basic expenses, Soto said: “I kinda rely on tips at the end of the day.”
The empty feeling is apparent on the usually buzzing Las Vegas Strip. Hotel occupancy rates have declined to approximately 66.7% in early July compared to the same period last year, according to the LVCVA.
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“Vegas is not fun anymore,” Amrita Bhasin, a retail-industry entrepreneur, told MarketWatch.
She said that hotels in the city can charge as much as $50 in resort fees that make their stay even more expensive.
Rising prices affect both workers and tourists. Wally Weidner, a 67-year-old Wisconsin visitor, said he’s reconsidering his tipping practices.
“Just because prices went up doesn’t mean I should pay more tip,” Weidner said.
At Mon Ami Gabi restaurant on the Strip, a dinner-menu cheeseburger with fries now costs $30.95 plus tax and tip, compared to $16.95 four years ago.
Rory Kuykendall, a 41-year-old California native who moved to Las Vegas a decade ago, works as a graveyard-shift bellperson at the Flamingo hotel and casino.
Tips constitute 25% to 70% of his income depending on weekly business levels, according to the Journal.
Kuykendall described his recent tip income as “underwhelming” while facing increased costs for groceries and car insurance.
He has reduced personal spending to manage finances.
“It really feels off,” he told the Journal.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
