No Tax on Tips Calculator
Estimate the No Tax on Tips deduction up to $25,000 for 2025–2028, including MAGI phase-outs and tipped-occupation rules.
Working Families Tax Cuts Hub HubNo Tax on Tips Calculator
Estimate how much of your tip income you may deduct under the Working Families Tax Cuts (Section 70201) for tax years 2025–2028. The annual cap is $25,000, with MAGI phase-outs starting at $150,000 (single/head of household) or $300,000 (joint).
Tip deduction
$18,000
Est. federal tax savings
$3,960
What Counts as Qualified Tips
Qualified tips are voluntary cash or charged tips from customers, including shared tips, that are properly reported (W-2, 1099, other statement, or Form 4137). Occupations must be ones the IRS identified as customarily and regularly tipped on or before December 31, 2024.
Who Qualifies
You generally need a Social Security number and tip income in a qualifying occupation. Both itemizers and non-itemizers may claim it. SSTB owners/employees are excluded.
Phase-Out Snapshot
| Filing status | Phase-out begins | Max tip deduction |
|---|---|---|
| Single / HoH | $150,000 MAGI | $25,000 |
| Married filing jointly | $300,000 MAGI | $25,000 |
This calculator uses a planning-friendly $100 reduction per $1,000 of MAGI over the threshold (same style as our overtime tool). Confirm final math on current IRS worksheets.
Occupation Shortcuts
- Server tips tax calculator
- Bartender tips tax calculator
- Rideshare tips tax calculator
- Delivery driver tips tax calculator
- Salon tips tax calculator
- Hotel tips tax calculator
- Casino tips tax calculator
Stack With Other Deductions
Many workers also qualify for no tax on overtime on OT premium pay, car loan interest, or the senior deduction. Model everything in the Working Families Tax Cuts savings estimator.
Related Guides
- No tax on tips guide
- Working Families Tax Cuts hub
- No tax on overtime guide
- How US overtime and tips deductions compare
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.
Use Schedule 1-A style additional deduction reporting as directed by current IRS forms for the filing season.
If you qualify for more than one deduction, claim each only against its own qualified income or interest — do not double-count.
This content is educational and informational only. It is not tax, legal, or financial advice for your specific return.
Keep Form W-2 / 1099 statements and year-end interest statements with your tax records for at least three years.
These Working Families Tax Cuts deductions are temporary for tax years 2025 through 2028 unless Congress extends them.
Federal income-tax savings do not automatically change Social Security or Medicare withholding on your paycheck.
State tax treatment may differ — confirm whether your state conforms to the new federal deductions.
When MAGI is near a phase-out threshold, run a withholding checkup mid-year so your refund or balance-due is not a surprise.