2025 Tax Year

Tips Tax Calculator

Estimate your federal tax savings under the OBBBA "No Tax on Tips" deduction (P.L. 119-21 §70201)

Tips Details

Average Monthly Tips ($) Cash + credit card tips reported on your W-2

Tax Information

Filing Status

Single MFJ HoH MFS

Annual Income — MAGI ($) Total annual income including tips (W-2 gross)

Pay Frequency

How often are you paid?

Estimated Tax Savings

$0.00

Federal income tax reduction per year

$0.00 per paycheck

Deduction Breakdown

Annual Tips $0.00

Tips Deduction $0.00

Phaseout Reduction $0.00

            Final Deduction
            $0.00
          

Marginal Tax Rate 0%

FICA Still Owed

The tips deduction does not reduce FICA taxes

$0.00

Data Sources & Legal Authority

Law P.L. 119-21 §70201 — One Big Beautiful Bill Act (signed July 4, 2025)

Deduction IRS — Tips and Overtime Guidance

Caps IRS Newsroom — OBBBA Tax Deductions

FICA IRS Publication 15 (2025) — SS 6.2% on first $176,100; Medicare 1.45%

Brackets IRS Rev. Proc. 2024-40 / OBBBA 2025 rates

Important Disclaimer This calculator provides estimates based on published federal tax rates and the OBBBA tips deduction parameters. It is not financial, tax, or legal advice. Actual savings may differ based on individual circumstances. Consult a qualified tax professional for personalized advice. Not affiliated with the IRS or any government agency. Verify all figures with official IRS publications.