(NEXSTAR) – Both presidential candidates promised to eliminate taxes on restaurant workers’ tips, a move that, if enacted, could be especially beneficial to employees in certain states.
“When I get to office we are going to not charge taxes on tips, people making tips,” Trump told culinary union workers at a June rally in Las Vegas. Harris would go on to make the same promise in August.
A recent analysis by the payment platform Square found that the share of a restaurant worker’s income made up by tips varies widely by state.
Wyoming has the highest reliance on tips, at 33%. Square payment terminal data shows that the average tip on restaurant checks in the Cowboy State is 16.11% as of Sept. 2024, down .48% from the year before.
Alaska and South Dakota are tied for second with restaurant workers’ tips making up 31% of income. The average Alaskan restaurant worker makes substantially more per hour, however: $16.87 compared to $13.49 in South Dakota, where the cost of living is lower . Like in Wyoming, tipping percentages fell from 2023’s numbers, slipping 0.13% to 15.66% in Alaska and 0.16% to 16.56% in South Dakota.