Tax Deductions 2025–2026 calculators
The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created four new federal deductions for tax years 2025 through 2028: up to $25,000 for qualified tips, up to $12,500 ($25,000 for joint filers) for qualified overtime, up to $10,000 of interest on a loan for a new U.S.-assembled vehicle, and an extra $6,000 deduction for people 65 and older.
All four are available whether or not you itemize, and all four phase out at higher incomes. These calculators apply the caps and phase-outs and then run the numbers through the federal tax brackets, so you see the tax you actually save — not just the size of the deduction.
Tax Deductions 2025–2026 calculators
Schedule 1-A Calculator: New Tax Deductions
Stack the tips, overtime, car loan interest and senior deductions and see your total tax savings.
Car Loan Interest Deduction Calculator
Estimate the new up-to-$10,000 deduction for new-car loan interest (2025–2028).
No Tax on Overtime Calculator
Work out your qualified overtime and the federal tax the new deduction saves.
No Tax on Tips Calculator
Estimate the deduction for qualified tips (up to $25,000) and your tax savings.
Senior Deduction Calculator ($6,000)
Estimate the new $6,000 deduction for people 65 and older, after the income phase-out.
Which tax calculator do you need?
- Several of the new deductions apply? Use the Schedule 1-A calculator to stack tips, overtime, car loan interest and the senior deduction in one place.
- Tipped worker? The no tax on tips calculator applies the $25,000 cap and the phase-out.
- Paid overtime? The no tax on overtime calculator works out the qualified “half” of time-and-a-half.
- Bought a new U.S.-assembled car with a loan? The car loan interest deduction calculator can even estimate the year’s interest from your loan terms.
- Age 65 or older? The senior deduction calculator applies the 6% income phase-out.
Deductions vs. tax savings
A deduction lowers taxable income, so the tax you save is roughly the deduction times your marginal tax rate — not the full deduction. That is why each calculator runs your numbers through the actual federal brackets for 2025 or 2026. These new deductions also do not reduce AGI, so they will not change income-tested amounts such as ACA subsidies or Medicare IRMAA.
Tax Deductions 2025–2026 guides
How to Calculate Qualified Overtime for the No-Tax-on-Overtime Deduction
Only the FLSA half-time premium counts toward the overtime deduction. How to find it on your pay stubs, what the regular rate includes, and examples.
TaxesNo Tax on Tips: Which Jobs Qualify and Which Tips Count
The tips deduction covers jobs on the Treasury list of tipped occupations, from servers to rideshare drivers. Which tips count, the limits, and examples.
TaxesSchedule 1-A Explained: The Four New Tax Deductions for 2025–2028
No tax on tips, no tax on overtime, car loan interest and the $6,000 senior deduction: who qualifies, the caps, the phase-outs and what you need to claim them.