OBBBA Tax Savings Calculator 2026 β One Big Beautiful Bill Act
Calculate exactly how much you save under the One Big Beautiful Bill Act. Compare your tax under old law vs new law across all OBBBA provisions: tips, overtime, senior deduction, enhanced CTC, car loan interest, and higher SALT cap.
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Total wages before any deductions $
Max $25,000 deductible under OBBBA $
Extra 50% portion of overtime wages only $4,000 senior deduction if age 65+
Qualifying children for enhanced CTC ($2,500 each)
$
Max $10,000 deductible under OBBBA $
Old cap: $10K. OBBBA cap: $40K $
Usually same as gross income; used for phaseout calculations Examples:
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Total OBBBA Savings
$0
Tax Under Old Law
$0
Tax Under OBBBA
0%
Tax Reduction %
OBBBA Provision Savings Breakdown
| Provision | Old Treatment | OBBBA Treatment | Your Savings |
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How to Use This OBBBA Tax Savings Calculator
Enter your income details and the calculator will compute your federal income tax under both the old law and the One Big Beautiful Bill Act, showing you exactly how much each provision saves you.
The OBBBA Formula
Old Law Tax = Tax(Gross β Standard Deduction β min(SALT, $10K))
New Law Tax = Tax(Gross β Tip Deduction β OT Deduction β Senior Deduction β Standard Deduction β min(SALT, $40K) β Car Interest) β Enhanced CTC
Total Savings = Old Law Tax β New Law Tax
New Law Tax = Tax(Gross β Tip Deduction β OT Deduction β Senior Deduction β Standard Deduction β min(SALT, $40K) β Car Interest) β Enhanced CTC
Total Savings = Old Law Tax β New Law Tax
Example
Maria, single, $65K wage + $15K tips, 2 kids, $8K SALT, $3,600 car loan interest:
Old law tax: ~$7,200 | New OBBBA tax: ~$1,800
Tip deduction saves: ~$2,250 | Enhanced CTC saves: $1,000 | Car interest saves: ~$396
Total OBBBA savings: ~$5,400
Old law tax: ~$7,200 | New OBBBA tax: ~$1,800
Tip deduction saves: ~$2,250 | Enhanced CTC saves: $1,000 | Car interest saves: ~$396
Total OBBBA savings: ~$5,400
Extended
Income Level Impact Analysis
See how OBBBA savings vary across different income levels for your filing status
OBBBA Savings by Income Level
Shows estimated OBBBA savings at different income levels using your current provision inputs (tips, children, SALT, etc.) with your selected filing status.
| Income Level | Old Law Tax | OBBBA Tax | Annual Savings | Savings % |
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Who Benefits Most from OBBBA?
- Tipped workers earning up to $160K β full $25K tip deduction saves up to ~$5,500 in federal tax
- Overtime workers in hourly jobs β deduction on premium pay reduces effective OT rate
- Families with children β extra $500/child Γ marginal rate in CTC benefit
- Homeowners in high-tax states β SALT cap rising from $10K to $40K is biggest benefit for high-income itemizers
- Senior taxpayers (65+) with income under $75K/$150K β new $4,000 deduction applies
Frequently Asked Questions
What is the One Big Beautiful Bill Act (OBBBA)?
The One Big Beautiful Bill Act is a comprehensive tax legislation package that extends and expands multiple tax provisions including tip income deductions, overtime deductions, enhanced child tax credits, senior deductions, car loan interest deductions, and higher SALT caps. It represents one of the most significant tax changes since the 2017 Tax Cuts and Jobs Act.
How does the tip income deduction work under OBBBA?
Under OBBBA, tip income up to $25,000 per year is deductible from federal income tax. This deduction phases out for single filers with income above $160,000 and married filing jointly filers with income above $320,000. The deduction is taken above-the-line, meaning it reduces your AGI regardless of whether you itemize.
What is the OBBBA overtime deduction?
OBBBA allows workers to deduct the premium portion of their overtime pay (the extra 50% above regular wages). The deduction is capped and subject to the same $160,000/$320,000 phaseout as the tip deduction. Only the premium portion β not total overtime pay β is deductible.
How does the enhanced Child Tax Credit work under OBBBA?
OBBBA increases the Child Tax Credit from $2,200 per qualifying child to $2,500 per qualifying child under age 17. The phase-in and phase-out thresholds remain similar to prior law. This means families with multiple children could see significantly larger credits under the new law.
What changed with SALT deductions under OBBBA?
OBBBA raises the state and local tax (SALT) deduction cap from $10,000 to $40,000, with a phaseout beginning at $500,000 of income. This is a major benefit for taxpayers in high-tax states like California, New York, and New Jersey who itemize deductions. The higher cap means many more homeowners will benefit from itemizing.