OBBBA 2026 Tax Savings Calculator — Will My Taxes Drop?

The One Big Beautiful Bill created four brand-new deductions for the 2026 filing season — No Tax on Tips, No Tax on Overtime, Car Loan Interest, and the Senior Bonus. See your total new deduction and estimated federal tax savings in seconds. ✓ 2026 IRS figures

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OBBBA 2026 Tax Savings

New deductions • Estimated savings

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Enter your numbers to see your 2026 tax savings

How the 2026 OBBBA Deductions Work

  1. Pick your filing status and income — income drives each phase-out.
  2. Enter your tips, overtime premium, car-loan interest, and how many people are 65+.
  3. Choose your tax bracket — your savings = deduction × your rate.
  4. Read your total — the four new deductions stack on top of your standard deduction.

The New 2026 Deductions Explained

The One Big Beautiful Bill Act (OBBBA), signed July 2025, created four new deductions you can claim on your 2026 tax return — and the best part is most stack on top of the standard deduction, so you don't have to itemize.

No Tax on Tips: deduct up to $25,000 of qualified tips. No Tax on Overtime: deduct your overtime premium up to $12,500 ($25,000 married filing jointly). Both phase out above $150,000 MAGI ($300,000 joint). Car Loan Interest: deduct up to $10,000 of interest on a new, US-assembled personal vehicle, phasing out above $100,000 ($200,000 joint). Senior Bonus: an extra $6,000 per person 65+, phasing out above $75,000 ($150,000 joint).

This is an educational estimate, not tax advice — your actual benefit depends on your full return. Claim these on the new Schedule 1-A when you file for 2026.

OBBBA 2026 Tax FAQ

No. The tips, overtime, car-loan-interest and senior deductions are claimed on the new Schedule 1-A and stack on top of the standard deduction — you do not need to itemize.
Only the extra portion above your regular rate — the "half" in time-and-a-half. If you earned $30/hr regular and $45/hr overtime, the deductible premium is $15 per overtime hour.
New (not used) vehicles assembled in the US, bought 2025–2028 for personal use, financed with a secured loan. Up to $10,000 of interest per year is deductible, phasing out above $100,000 income ($200,000 joint).
Yes — the new $6,000-per-person senior bonus (2025–2028) is on top of the existing age-65 standard-deduction add-on. It phases out above $75,000 income ($150,000 joint).

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: IRS.gov, U.S. Bureau of Labor Statistics