Keep more of your tips and overtime.
Free calculators for the new federal deductions on tips and overtime pay. Enter your income and hours and see your deduction - and the tax you save - in about 30 seconds.
Who it's for
Built for people who earn tips and overtime
If you wait tables, tend bar, style hair, drive deliveries, or clock overtime on the floor or the ward, the 2025 law created two federal deductions aimed squarely at you. They lower the income tax on your tips and on the premium half of your overtime, up to generous annual caps.
These calculators translate the rules into a real dollar figure for your situation - so you're not left guessing what the headlines mean for your paycheck.
The calculators
Turn the new rules into a dollar figure
Two focused tools - run whichever matches how you're paid, or both.
No Tax on Overtime Calculator
Estimate your federal overtime deduction and tax saved in 30 seconds. Uses the IRS caps ($12,500 single, $25,000 joint) and income phase-out.
No Tax on Tips Calculator
See how much of your tips you can deduct (up to $25,000) and the federal tax you save. W-2 and self-employed tips, income phase-out included.
How it works
Three steps, no spreadsheet
Pick your calculator
Tips or overtime - or run both if you earn both kinds of pay.
Enter your numbers
Income, filing status and your tips or overtime hours. Everything stays in your browser.
See your deduction
The deductible amount and estimated federal tax saved, with the income phase-out applied.
Guides
Understand the rules
How No Tax on Overtime Works
What counts as qualified overtime, the $12,500 cap, the income limit, and 3 worked examples.
ReadHow No Tax on Tips Works
Who qualifies, which tips count, the $25,000 cap and income limit - with real examples.
ReadNo Tax on Tips for 2025 Returns
How to claim it for tax year 2025, what your employer reports, and how to fix a return filed without it.
ReadNo Tax on Tips in 2026
The cap, the income limit, W-2 reporting, and when you claim it (filing season 2027).
ReadWhat you get
A clear number, with the maths shown
Enter your income, filing status and your hours or tips, and each calculator shows your deduction and the federal tax it saves - with every step laid out: the qualifying amount, the annual cap, and the income phase-out applied line by line.
Nothing is hidden and nothing is stored. Copy a shareable link to your result, or print it for your records at tax time.
Why trust these numbers
Straight from the IRS, dated and linked
Every figure comes from official IRS guidance - the newsroom explainer and the draft Schedule 1-A instructions - not from other calculator sites. The caps ($12,500 overtime, $25,000 tips), the phase-out thresholds ($150,000 single / $300,000 joint) and the SSN and joint-filing rules are drawn straight from those sources.
On each calculator we link the exact IRS source with the date we last checked it, and update the same week the IRS changes a number. These are estimates to help you plan - not tax advice. Confirm with IRS.gov or a tax professional before you file.
Ready?
Find your number in under a minute
Free, private and instant - see how much the new tips and overtime deductions could save you.
Start with overtimeCommon questions
Is there really no tax on tips in 2025?
Yes — the One Big Beautiful Bill Act created a federal income tax deduction of up to $25,000 on qualified tip income for tax years 2025–2028. The deduction phases out above $150,000 AGI (single) and $300,000 (married filing jointly). It reduces federal income tax only — Social Security and Medicare taxes still apply to tips.
What counts as qualified overtime for the tax deduction?
Qualified overtime is the premium portion of overtime pay — the extra "half" in time-and-a-half — paid to non-exempt hourly workers under the Fair Labor Standards Act. The deduction is capped at $12,500 per year (single) or $25,000 (married filing jointly) and phases out above $150,000 AGI single / $300,000 joint.
Do both tips and overtime deductions apply at the same time?
Yes, if you earn both. Each deduction has its own cap: up to $25,000 for tips and up to $12,500 for overtime (single filers). They are calculated separately and each has its own income phase-out. Use both calculators and add the results to estimate your total deduction.
Does the no-tax-on-tips rule apply to self-employed workers?
Yes — the deduction applies to both W-2 employees and self-employed workers who report tip income. For self-employed individuals, tips reported on Schedule C qualify. Social Security and self-employment tax still apply to that income; only the federal income tax portion is affected by the deduction.