Tip Tracker
No Tax on Tips calculator
See how much of your tips and overtime you can deduct from federal income tax. Takes 30 seconds, no sign-up.
Estimate only, not tax advice. Check IRS guidance or a tax professional before filing.
How the deduction works
Most you can deduct in qualified tips each year, per return. Tax years 2025 through 2028.
Most you can deduct in overtime premium, or $25,000 filing jointly. Only the extra part of FLSA overtime counts.
Income where the deduction starts shrinking, $100 for every $1,000 over ($300,000 joint).
Tips have to be voluntary, from cash, card or a tip pool, in a job that customarily gets tips. Service charges don't count. You need a Social Security number valid for work, and married couples filing separately can't claim it. You don't have to itemize.
Keep the record that backs it up
- Log a shift in five seconds: cash, card, tip-outs and hours, with your real per-hour rate.
- Watch your deduction add up toward the $25,000 tip cap and the overtime cap.
- Overtime math done for you: only the deductible premium is counted.
- Know your best nights with weekly, monthly and yearly charts.
- Tax time ready: export every shift to CSV, or a PDF report for your preparer.
- Private: no account, your shifts stay on your phone.
Questions
Is No Tax on Tips real?
Yes. For tax years 2025 through 2028, workers in jobs that customarily receive tips can deduct up to $25,000 of qualified tips from federal taxable income.
Do I still pay Social Security and Medicare on tips?
Yes. The deduction lowers federal income tax only. Payroll taxes still apply, and state income tax depends on your state.
Do I have to itemize to claim it?
No. You can take the tips and overtime deductions whether you take the standard deduction or itemize.
How much overtime can I deduct?
Only the premium part of overtime required by the Fair Labor Standards Act, such as the extra half of time-and-a-half, up to $12,500 a year or $25,000 for joint filers.
Who can't claim it?
Married people filing separately, people without a Social Security number valid for work, and higher earners as the deduction phases out by $100 for every $1,000 of income above $150,000 ($300,000 joint).
What records should I keep?
Keep a daily log with the date and amount of cash and card tips and what you tipped out. IRS Publication 1244 has a sample daily tip record. Tip Tracker keeps this log for you.