OBBBA Tax Calculator: How Much Will You Save?
Enter your numbers below to see all four OBBBA tax deductions at once — no tax software, no 25-minute IRS wizard, no signup.
Your Information
Determines senior deduction (65+)
Modified Adjusted Gross Income
Hours worked beyond 40/week
Regular rate (not OT rate)
New, US-assembled vehicle only
Your OBBBA Savings
Overtime Deduction
$6,250
Tax saved
$1,375
Tips Deduction
$0
⚠ No tip income entered
Car Loan Interest
$0
⚠ No car loan interest entered
Senior Bonus
$0
⚠ Must be 65 or older
Estimates only. FICA (Social Security & Medicare) not included.
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
What Is the One Big Beautiful Bill Act (OBBBA)?
Signed into law on July 4, 2025, the OBBBA created four new federal income tax deductions available for tax years 2025 through 2028:
- No Tax on Overtime — Deduct up to $12,500 ($25,000 married filing jointly) of qualified overtime premium pay
- No Tax on Tips — Deduct up to $25,000 of qualified tip income
- No Tax on Car Loan Interest — Deduct up to $10,000 of interest on qualifying auto loans
- Senior Bonus Deduction — An additional $6,000 deduction for taxpayers 65 and older
Each deduction has income limits and phase-out rules. This calculator applies all of them automatically.
How Accurate Are These Estimates?
Our calculations use the official IRS Schedule 1-A formula and 2025–2026 federal tax brackets. The math is transparent — see how it works. However, your actual tax savings depend on your full tax picture, including itemized vs. standard deductions, state taxes, and other factors not included here.
Frequently Asked Questions
Can I claim all four deductions?
Yes — if you qualify for each one independently. Overtime and tips require W-2 employment. The car loan deduction requires a qualifying vehicle assembled in the U.S. The senior deduction requires age 65+.
Does this work for self-employed or 1099 contractors?
No. The overtime and tips deductions only apply to W-2 employees. Self-employed income does not qualify.
Is FICA (Social Security and Medicare) included?
No. FICA taxes still apply to all wages, including overtime and tips. These deductions only reduce federal income tax.