OBBBA Tax Savings Hub (2025–2026)
Enter your numbers once to combine tips, overtime, qualified car-loan interest, and the higher SALT cap. The estimator applies each provision in the correct order and compares itemizing with the standard deduction.
Last updated: October 20, 2026
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| Calculator | Answers | Key rule |
|---|---|---|
| No Tax on Tips | Qualified tips deduction | $25,000 cap; MAGI phase-out |
| No Tax on Overtime | FLSA overtime premium only | $12,500 / $25,000 cap |
| SALT / Itemize | Itemized versus standard | $40,000 SALT cap for 2025 |
| Car Loan Interest | Qualified annual loan interest | $10,000 cap; vehicle checklist |
How it works
- Three above-the-line deductions: qualified tips, FLSA overtime premium, and qualified vehicle-loan interest reduce income whether or not you itemize.
- Then choose itemized or standard: SALT allowed plus mortgage interest and charitable gifts are compared with the standard deduction.
- One exact bracket walk: tax before is compared with tax after all allowed deductions. The calculator does not multiply everything by one marginal rate or double-count itemized deductions.
- Hub assumptions: overtime uses 50 working weeks at 1.5×. Car interest is assumed to satisfy T4’s new-vehicle, US-final-assembly, personal-use, first-lien, and VIN requirements. Open the linked detailed calculators to verify eligibility.
FAQ
Can I claim these deductions and the standard deduction?
Tips, qualified overtime premium, and qualified car-loan interest are above-the-line-style deductions available without itemizing. SALT, mortgage interest, and charitable gifts are itemized deductions.
How does the hub avoid double counting?
It first subtracts the three above-the-line deductions, then subtracts only the better of the itemized total or the standard deduction. It never adds the itemized total on top of the standard deduction.
Why does the result differ from multiplying by my marginal rate?
A deduction can cross tax brackets. The hub walks the tax brackets exactly before and after the combined deductions.
What overtime assumptions are used?
The hub assumes 50 weeks of overtime at time-and-a-half and counts only the premium above the regular rate.
Does entering car interest mean my vehicle qualifies?
No. The hub assumes qualification. Use the linked car-loan calculator and its new-vehicle, US-assembly, personal-use, lien, and VIN checklist.
Is this a refund estimate?
No. It estimates federal income-tax savings from these deductions, not withholding, credits, payroll taxes, state taxes, or your final refund.
Methodology
hours × 50 weeks × rate × (1.5 − 1). The SALT engine uses the year-indexed Pub. L. 119-21 §70120 table (cap / phase-down threshold): 2025 $40,000 / $500,000; 2026 $40,400 / $505,000; 2027 $40,804 / $510,050; 2028 $41,212.04 / $515,150.50; 2029 $41,624.16 / $520,302.01; the cap returns to $10,000 in 2030. MFS receives half the cap and threshold but is unsupported in the UI. Let A = tips deduction + overtime deduction + car-loan deduction and I = max(0, itemized total − standard deduction). Then savings = tax(max(0, MAGI − standard)) − tax(max(0, MAGI − standard − A − I)) using the shared bracket table. This exact walk prevents itemized deductions from being counted against both the standard deduction and the above-the-line deductions. MAGI is treated as AGI; Head of Household uses single-filer values.Sources: IRC §§224, 225, 163(h)(4), 164(b)(6)/(7); Pub. L. 119-21 §§70120, 70201–70203; Rev. Proc. 2024-40 / 2025-32 — accessed October 2026Last updated: October 20, 2026 · Reviewed against official IRS guidanceContinue with OBBBA Tax Center · OBBBA explained guide · above-the-line deductions guide