The 2026 "No Tax on Tips" deduction lets tipped workers deduct up to $25,000 of tips. See your deductible amount and estimated federal tax savings instantly. ✓ 2026 IRS figures
2026 tip deduction • Savings
Under the One Big Beautiful Bill, tipped workers — servers, bartenders, hairstylists, drivers and other customarily-tipped occupations — can deduct up to $25,000 of qualified tips on their 2026 return. It's an above-the-line-style deduction claimed on the new Schedule 1-A, so you can take it without itemizing, on top of your standard deduction.
The deduction phases out once modified AGI passes $150,000 ($300,000 married filing jointly), reduced by $100 for every $1,000 over the threshold. Your actual savings equal your deductible tips multiplied by your marginal tax rate — a server in the 12% bracket with $18,000 in tips saves about $2,160. This is an estimate, not tax advice.