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No Tax on Tips & Overtime Calculator 2026
The new federal deductions let you deduct up to $25,000 of qualified tips and up to $12,500 of overtime premium ($25,000 if married filing jointly) for 2025–2028. Enter your numbers to estimate your deductions and tax saving.
How it's calculated
- Only the overtime premium counts: the part above your regular rate. For time-and-a-half, that's one-third of your overtime pay.
- Both deductions are reduced by $100 for every $1,000 of income (MAGI) over $150,000 ($300,000 joint).
- You need a Social Security number, and married couples must file jointly. You don't need to itemize.
Federal income tax only. Social Security, Medicare and most state taxes still apply. An estimate, not tax advice.
Track it week by weekThe tracker logs every week's tips and overtime, applies the limits and checks your 2026 W-2 codes TP and TT.
No Tax on Tips & Overtime Tracker: $7.99 →
Questions
How much can I deduct for tips?
Up to $25,000 of qualified tips a year, reduced if your income is over $150,000 ($300,000 joint).
Does all my overtime pay count?
No. Only the premium above your regular rate: one-third of time-and-a-half pay.
Do I still pay Social Security and Medicare on tips?
Yes. These are federal income tax deductions only.