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
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Up to $25,000 in tips deductible
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Benefits service workers, waiters, bartenders
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Reduces taxable income significantly
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Encourages better service and tipping
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No Tax on Overtime
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Up to $12,500 in overtime deductible
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Benefits hourly workers and professionals
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Rewards hard work and extra hours
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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.