Strip clubs are big business in Las Vegas, and the performers who work in these establishments are still uncertain about whether they must pay taxes on tips under President Donald Trump’s new policy.
Trump first announced his plan to cut taxes on tips at a campaign rally in Nevada ahead of the 2024 election. He proceeded to introduce the measure in January, and the legislation came into law in July. It means that people can avoid paying federal tax on their first $25,000 earned in tips for a given year.
pornographic activity” doesn’t fall into the eligible category
However, an exclusion in the legislation says that “pornographic activity” doesn’t fall into the eligible category for this rule.
The IRS hasn’t yet clarified what activities fall under the “pornographic” label. The list of 70 eligible occupations does mention “dancers” and “entertainers and performers,” which is why there’s uncertainty for the reported 30,000 to 40,000 registered exotic dancers in the Las Vegas Valley.
Strip clubs are already struggling to cope with lower business as tourism to Sin City has declined significantly in 2025. According to a report by The Huffington Post in April, Vegas strip club revenue is down 12% year-on-year.
