women server at restaurant

Arizona workers no longer have to pay taxes on tips

An ASU economist weighs in on the new state budget and what it means for tipped workers. Servers, baristas, and bartenders could keep more of their earnings under the latest changes.

Isys Morrow

In this article published June 15, 2026, in the Phoenix New Times:

For those workers, the tax exemption is a bright spot. You don't have to pay taxes, but, more importantly, you're going to want to think about how you maximize tip income over ordinary income going forward.

Dennis Hoffman, director of ASU's Office of the University Economist

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