About this tips calculator

This is a free, browser-based estimator for the 2026 No Tax on Tips deduction created by the One Big Beautiful Bill Act. Enter your qualified tips, your filing status, and your modified adjusted gross income, and it returns the deduction cap that applies to you after any income phaseout, the deduction you can claim, and an estimate of the federal tax it would save.

Where the numbers come from

The rules encoded here are the statutory figures for tax years 2025 through 2028: a $25,000 cap that is the same for single and joint filers, and a phaseout that removes $100 of cap for every $1,000 of MAGI over $150,000 (single) or $300,000 (joint). These figures were checked against the IRS overview of the Act during the build and are stored as a dated constants module.

What it does not do

It does not file your return, it does not remove FICA taxes from your tips, it does not see the rest of your tax picture, and it does not store anything you type. The tax-saved line is a first-order estimate based on the single marginal rate you choose. Treat the output as a planning estimate, not tax advice.

Related tools

Estimate the No Tax on Overtime deduction and the car loan interest deduction, or read the overview on the 2026 Tax Rules hub.