No Tax on Tips & Overtime

How Trump's 2025 tax changes benefit service workers and overtime earners

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New Deductions for Workers

The OBBA introduces groundbreaking deductions for tips and overtime pay

Up to $25,000 in tips and $12,500 in overtime can be deducted from taxable income

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No Tax on Tips

✓ Up to $25,000 in tips deductible
✓ Benefits service workers, waiters, bartenders
✓ Reduces taxable income significantly
✓ Encourages better service and tipping
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No Tax on Overtime

✓ Up to $12,500 in overtime deductible
✓ Benefits hourly workers and professionals
✓ Rewards hard work and extra hours
✓ Increases take-home pay for overtime

Impact Examples

Server Example

Annual Tips: $30,000
Deductible Amount: $25,000
Tax Savings: $6,000

Overtime Worker Example

Annual Overtime: $15,000
Deductible Amount: $12,500
Tax Savings: $3,000

Calculate Your Savings

Use our tax comparison calculator to see how these new deductions affect your tax liability under Trump's 2025 tax changes.