No Tax on Tips & OvertimeCalculatorGuides

No Tax on Tips & Overtime Calculator (2025–2028)

Estimate only, not tax advice. This calculator applies the caps and phase-out from IRC §§ 224–225 as the IRS describes them. It runs in your browser, and nothing you enter is sent anywhere.

How the calculator works

  1. Caps qualified tips at $25,000 and the overtime premium at $12,500 ($25,000 joint).
  2. Reduces each deduction by $100 per $1,000 of MAGI over $150,000 ($300,000 joint), applied proportionally.
  3. Multiplies the total by your marginal rate for a rough savings figure.

Not sure what counts? See what counts as qualified overtime, eligible tipped occupations and the phase-out explained.

Sources: IRS FS-2025-03, 26 U.S.C. § 224, 26 U.S.C. § 225.