Tax Tip Calculator
Free, fast, and no sign-up. Results are estimates.
About the Tax Tip Calculator
Enter your yearly wages, your yearly tips, filing status and state. The calculator compares your tax with and without the federal deduction for qualified tips, which this tool caps at 25,000 dollars a year and reduces for higher incomes.
Frequently asked questions
Are tips taxable?
Yes. Tips count as income for federal income tax and for Social Security and Medicare. The federal deduction for qualified tips can reduce income tax, but not payroll tax.
Does everyone qualify for the tip deduction?
No. The deduction depends on your job and income, so check the current IRS rules for your situation. This calculator gives a general estimate.
Is the result exact?
These results are estimates for planning, not tax advice. They do not include local taxes, health insurance, or other payroll deductions.