The new 2025–2028 tax deductions, calculated in seconds

The One Big Beautiful Bill Act created four brand-new federal deductions worth up to $25,000+ per household. Most people don't know what they qualify for. Find out in under a minute — free, no signup.

New law
No Tax on Overtime
Deduct up to $12,500 ($25,000 joint) of overtime premium pay from your federal taxes.
 New law
No Tax on Tips
Servers, drivers, stylists: up to $25,000 of reported tips is now federally deductible.
 New law
Senior Bonus Deduction
Age 65+? Claim an extra $6,000 per person — even without itemizing.
 New law
Car Loan Interest
New US-assembled vehicle? Deduct up to $10,000 of loan interest per year.
 All 50 states
Paycheck Calculator
Your real 2026 take-home pay after federal, FICA, and state taxes.

Why these deductions matter now

These four deductions apply to tax years 2025 through 2028 and are claimed on the federal returns you file each spring. They all stack on top of the standard deduction — no itemizing required — which makes them unusually valuable for regular W-2 workers and retirees. A tipped restaurant worker pulling overtime could shelter $20,000+ of income; a retired couple can knock $12,000 off their taxable income automatically.

Withholding hasn't caught up in many workplaces, so most eligible workers will see the benefit as a larger refund — unless they adjust their W-4. Our calculators show you what's on the table so you can plan ahead.

Estimates you can sanity-check

Every calculator shows its work — caps, phase-outs, and the exact rules — with figures from the IRS's published 2026 inflation adjustments and One Big Beautiful Bill Act guidance. They're planning estimates, not filing software: for your actual return, use a tax professional or reputable filing software.

Disclaimer: SimpleDeduction provides estimates for educational purposes only — not tax, legal, or financial advice. Figures are based on 2026 federal and state guidance and may not reflect your complete situation. Consult a qualified tax professional or irs.gov before making decisions.