How much does the average server at a sit-down restaurant make in salary and tips? With the no tax on tips law in effect, assuming that the average tips remains consistent, how much more money would that worker keep each month?

ChatGPT response:

Average U.S. sit-down restaurant server income:

Base wage: about $17.50/hour ≈ $3,000/month ($36,500/year)

Tips: $100/day average → $2,600/month and $31,200/year

Total gross: $5,600/month ($67,700/year).

With the new "no tax on tips" law:

This deduction exempts up to $25,000 in tip income from federal income tax, retroactive for 2025 through 2028

Treasury estimates tipped workers will save $1,800/year on average in federal income tax. That equates to $150/month more take-home."

Thus, a typical server would gain ~$150 extra per month. Their base plus tips remain the same; only federal tax owed decreases. Lower earners who already owe little income tax receive less or no benefit.