About This Calculator
This is a free, independent tool that estimates your tax savings under the One Big Beautiful Bill Act (OBBBA). Every calculation runs in your browser — your numbers never leave your device — and there is no signup, no data collection, and no affiliation with the IRS, any government agency, or any tax preparation company.
The calculators cover all four OBBBA deductions: overtime premium pay, tip income, car loan interest, and the senior bonus deduction — plus the raised SALT cap and a W-4 withholding adjuster.
Calculation Sources
Our calculations are based on:
- IRS Schedule 1-A instructions (tax year 2025)
- 2025–2026 federal tax brackets
- OBBBA statutory text (Public Law 119-21)
Calculation Transparency
The formula for each deduction:
Overtime Premium
hourly_rate × 0.5 × ot_hours, capped at $12,500/$25,000, phase-out $100 per $1,000 MAGI over $150K (single) / $300K (MFJ)
Tips
min(tip_income, $25,000), same phase-out as overtime
Car Loan Interest
min(interest_paid, $10,000), phase-out $100K–$150K (single) / $200K–$250K (MFJ)
Senior Bonus
If age ≥ 65: $6,000, phase-out $75K–$150K (single) / $150K–$300K (MFJ)
Tax Savings
deduction_amount × marginal_tax_rate (from 2025 federal brackets)
Limitations
- Federal income tax only — state taxes not included
- FICA (Social Security & Medicare) not included
- Does not account for itemized deductions, AMT, or other tax situations
- Estimates are for informational purposes — not tax advice
Frequently Asked Questions
Is the OBBBA Tax Calculator affiliated with the IRS or any tax software company?
No. It's an independent, free tool — no affiliation with or endorsement by the IRS, any government agency, or any tax preparation company. Nothing to buy and no signup.
How accurate are the estimates?
Each deduction follows the IRS Schedule 1-A formulas line by line, including the caps and phase-outs, applied to the numbers you enter. What the estimate can't cover: state taxes, FICA, itemized deductions, AMT, and edge cases unique to your return. Treat it as a solid first estimate, not a substitute for filing software or a tax pro.
Do you store the numbers I enter?
No. All calculations run in your browser and your numbers never leave your device. There's no account, no data collection, and no cookies beyond standard analytics.
Which law do these calculators cover?
The One Big Beautiful Bill Act (OBBBA), Public Law 119-21 — the 2025 law that created four new above-the-line deductions: overtime premium pay, tip income, car loan interest on US-assembled vehicles, and the senior bonus deduction.
Should I use this instead of a tax professional?
No. Use it to understand what you might claim before you file. For decisions affecting your actual return, consult a qualified tax professional.
For decisions affecting your actual tax return, consult a qualified tax professional. Find a tax professional at IRS.gov.