Only 1 in 5 Hospitality Respondents Know How to Claim the "No Tax on Tips" Deduction - OysterLink Poll

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Only 1 in 5 Hospitality Respondents Know How to Claim the "No Tax on Tips" Deduction - OysterLink Poll

PR Newswire

AUSTIN, Texas, April 13, 2026 /PRNewswire/ -- With two days left until Tax Day on April 15, a new OysterLink poll of approximately 100 hospitality professionals finds that most respondents have heard of the "No Tax on Tips" deduction, introduced by the One Big Beautiful Bill signed into law on July 4, 2025. However, very few actually know how to claim it.

Based on a sample of approximately 100 hospitality professionals polled through OysterLink's website and social media channels, only 22% of respondents said they know exactly how to claim the deduction on their 2025 tax return. The largest group (43%) reported they have heard of the policy but are not sure how it works. Another 20% of respondents said they were not aware of the policy at all. The remaining 15% noted they do not receive tips, meaning the policy does not apply to them.

"These results show that awareness is starting to build, but understanding is still lagging behind," said Milos Eric, General Manager at OysterLink. "For a policy that directly impacts take-home income, clarity is critical. Right now, many workers simply don't know how to benefit from it."

What Workers and Employers Need to Know

Employees and self-employed individuals may deduct qualified tips up to $25,000 for certain qualified occupations, including wait staff, bartenders, salon workers, personal trainers, and gig economy workers.

The IRS issued final regulations listing more than 70 separate occupations of tipped workers who qualify, from bartenders to water taxi operators. For hospitality workers specifically, the list covers the core of the industry: servers, bartenders, concierges, valets, and more. The list also extends to less obvious roles including cooks and dishwashers who participate in tip-sharing arrangements, broadening eligibility beyond front-of-house staff.

"There's a real opportunity for businesses to step in and better support their staff," Eric added. "Even simple steps, like sharing resources or offering basic guidance, can make a meaningful difference."

Survey methodology: OysterLink surveyed approximately 100 hospitality professionals in Q1 2026. Results are directional and not statistically projectable to the full hospitality workforce.

Tax note: This press release is for informational purposes only and does not constitute tax advice. Workers should consult a tax professional regarding their individual eligibility.

About OysterLink

OysterLink is a job platform for restaurant and hospitality professionals, reaching over 350,000 monthly visitors. With listings, including top jobs in Houston and Austin, industry insights and resources, OysterLink helps professionals build rewarding careers in hospitality. To post a job or explore more labor market data, visit www.oysterlink.com.

Media Contact
Ana Demidova
PR Representative
ana@oysterlink.com

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SOURCE OysterLink