Bars & Nightclubs NAICS 722410

Jul 20, 2025 - No Tax on Tips

• The One Big Beautiful Bill Act signed by President Trump on July 4th includes limited and temporary tax exemptions for tipped workers. Under the new deduction, effective for 2025 through 2028, qualified workers with a gross adjusted income of under $150,000 annually ($300,000 for joint filers) will be exempt from paying tax on tipped earnings up to a maximum of $25,000, according to the IRS. If a worker earns over $150,000 annually their tipped income will start to be taxed. The exemption is expected to cover the majority of individuals earning tips such as bartenders and wait staff. (By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.) The bill also includes a No Tax on Overtime provision with a maximum annual deduction of $12,500.
• Labubu dolls are revitalizing the nightlife scene at clubs in Brooklyn, NY (and beyond) where raves featuring the highly-collectible creepy plush monsters attract up to 800 people, Time Out reported in July. At late-night parties in East Williamsburg (often running from 11 p.m. to 4 a.m.), Labubu revelers pack the dance floor for Labubu mystery unboxing giveaways, high-energy DJ sets, and performances by K-pop dance crews, according to Time Out. With TikTok and Instagram fueling their popularity, the gremlin-like creatures have become a viral sensation and can fetch eye-popping sums from collectors. This summer Labubu rave parties and events are being held in clubs from Brooklyn, to San Antonio, to Honolulu.

• Bar and nightclub goers will pay more for cocktails, champagne, and imported beers, while some brands will disappear from drinks menus as a result of President Trump’s tariffs, Reuters reports. Analysts at UBS estimated that large publicly-held spirits makers would have to hike prices by between 2% and 5% to cover the tariffs, or absorb the cost and take a similar hit to operating profit, according to Reuters. With wine and beer consumption already falling among US drinkers, tariff-inflated prices could further erode their share. Moreover, the broader impact of tariffs on household budgets may make consumers less likely to splurge on a pricey cocktail or night out, depressing sales for bars and nightclubs. Rising recessionary fears may also keep consumers at home. In March, Goldman Sachs raised the probability of a US recession to 35% from 20%, amid tariff turmoil and economic uncertainty.
• Employment by bars and nightclubs grew 2.7% in April compared to a year ago, while the average industry wage rose 4.5% over the same period to a new high of $23.31 per hour, according to the latest US Bureau of Labor Statistics data. With wages more than doubling over the past decade (up 103%) and employment rising, albeit more modestly, payrolls at bars and nightclubs have swelled. The industry’s growing labor costs are supported by rising consumer spending, which rose 2.7% year over year in February and 0.1% versus January, according to the Bureau of Economic Analysis. More broadly, employment in leisure and hospitality continued to trend upward in May – adding 48,000 jobs – largely in food services and drinking places (plus 30,000). Over the prior 12 months, leisure and hospitality added an average of 20,000 jobs per month, per the BLS.