New Tax Deductions for Tip & Overtime Pay
The 2025 OBBB Act created temporary new tax deductions for service and hourly workers. Use this calculator to estimate your potential federal income tax savings for tax years 2025-2028.
Your Tax Savings Estimator
Enter only the extra "time-and-a-half" portion, not your full overtime wage.
Your Estimated Results
Allowable Tip Deduction
$0
Allowable Overtime Deduction
$0
Total Estimated Tax Savings
$0
Based on your 2025 federal income tax.
Visual Explanations
Deduction Phase-Out by Income
The deduction amount decreases as your income rises. This chart shows how the maximum deduction for a single filer is reduced.
Tax Savings by Bracket
The value of a deduction depends on your marginal tax rate. This chart shows the tax savings from a $10,000 deduction for single filers in different brackets.
