Free calculator
No Tax on Tips calculator
Work out your federal tips deduction for 2025 to 2028 and roughly how much income tax it saves, using the same steps as IRS Schedule 1-A.
An estimate for planning, not tax advice. It assumes you're an employee, uses the standard deduction unless you enter itemized deductions, and leaves out credits and other deductions. Nothing you type leaves your browser.
How the calculator works
The "No Tax on Tips" rule is a federal income tax deduction for qualified tips, effective for 2025 through 2028. You claim it in Part II of Schedule 1-A, and the calculator follows that form's lines:
- Line 7: your qualified tips, up to $25,000.
- Lines 8 to 10: how far your modified adjusted gross income (MAGI) is over $150,000, or $300,000 if you're married filing jointly.
- Line 11: that amount divided by $1,000, rounded down to a whole number.
- Lines 12 and 13: $100 for each of those $1,000s comes off line 7. The result is your deduction, never below zero.
The rounding in line 11 matters near the threshold. A single filer with MAGI of $150,999 loses nothing, and one at $151,000 loses $100. Many calculators skip that step and take 10% of the whole excess.
To estimate the tax saved, the calculator works out your taxable income with and without the deduction and applies the federal tax brackets for that year, from Rev. Proc. 2024-40 for 2025 and Rev. Proc. 2025-32 for 2026. The 2025 standard deduction uses the amounts the new law set, also listed in Rev. Proc. 2025-32.
An example
Say you're single and serve tables in 2026, with $30,000 in reported tips and $28,000 in wages.
| Step | Amount |
|---|---|
| Adjusted gross income | $58,000 |
| Standard deduction (2026, single) | −$16,100 |
| Taxable income without the tips deduction | $41,900 |
| Tips deduction (capped at $25,000) | −$25,000 |
| Taxable income with it | $16,900 |
| Federal income tax: $4,780 without, $1,780 with | $3,000 saved |
All of the deduction comes out of the 12% bracket here, so it's worth 12% of $25,000. Someone in the 22% bracket would save more on the same tips, and someone whose income barely clears the standard deduction would save less.
Who qualifies
- Your job is on the IRS's list of occupations that customarily and regularly received tips, such as bartenders, wait staff, bussers, hosts, and app-based delivery and rideshare drivers.
- The tips were paid voluntarily by customers, in cash, by card or through a tip pool. Service charges the customer can't remove don't count, per the final regulations.
- The tips are on a W-2, a 1099 or another statement, or you report them on Form 4137.
- You have a Social Security number valid for employment, and you file jointly if you're married.
You get the deduction whether you take the standard deduction or itemize, per the IRS.
What the estimate leaves out
- Social Security and Medicare. The deduction is for income tax only. The calculator shows roughly what 7.65% of your tips comes to, so you can see it's still due.
- State income tax. This is a federal deduction. Your state's rules are separate.
- Credits and other deductions, including the new overtime and senior deductions, which would change your taxable income too.
- Self-employed tips. If you get tips as an independent contractor, the deduction can't be more than your net profit from that work.
- 2027 and 2028 brackets aren't published yet, so those years use the 2026 brackets.
Free and open source
The calculator's code is on GitHub under the MIT license, with tests built from the IRS tables. You're welcome to check the math, report a problem or embed it on your own site.
Keeping the numbers that go in
The deduction is only as good as your tip record. Tipling, our app, lets you log each shift's cash and card tips, tip-out and hours (or say them, with Pro), and the PDF income report (Pro) gives you a month-by-month and daily record to check against your W-2. It doesn't calculate tax or file anything. Get Tipling free on Google Play.
FAQ
How much is the No Tax on Tips deduction?
Up to $25,000 of qualified tips a year for 2025 through 2028. It shrinks by $100 for every full $1,000 of MAGI over $150,000, or $300,000 if you're married filing jointly.
Does No Tax on Tips mean I pay no tax on tips?
No. It lowers your federal taxable income, so it cuts federal income tax. Social Security and Medicare still apply to your tips, and state income tax may too.
How much will the deduction save me?
Roughly your deduction times your top federal tax bracket. A $25,000 deduction saves about $3,000 in the 12% bracket and about $5,500 in the 22% bracket. Use the calculator above for your numbers.
Do I need to itemize to get it?
No. You claim it on Schedule 1-A whether you take the standard deduction or itemize.
Can married couples filing separately claim it?
No. Married couples have to file a joint return to claim the deduction.
Is my data saved?
No. The calculator runs entirely in your browser, and nothing you type is sent anywhere.
Last reviewed: October 2026. Figures come from IRS Schedule 1-A and Rev. Procs. 2024-40 and 2025-32. This is general information, not tax advice.