How your total OBBBA tax change is calculated
The One Big Beautiful Bill Act created several new federal tax breaks for 2025–2028. This tool applies each one you qualify for, then values them together on the official 2026 tax brackets. Because the deductions are below-the-line, they stack on your taxable income, and the calculator measures the actual tax difference they make at your marginal rate — not a flat estimate.
- Tips: up to $25,000 deductible, phase-out above $150k/$300k.
- Overtime premium: up to $12,500/$25,000, same phase-out.
- Senior deduction: $6,000 per person 65+, 6% phase-out above $75k/$150k.
- Car loan interest: up to $10,000 on a qualifying new-vehicle loan, phase-out above $100k/$200k.
- Child Tax Credit: $2,200 per child under 17, phase-out above $200k/$400k.
The same dollar can't count twice (a tip can't also be overtime). Phase-outs use your AGI as a MAGI proxy, which is exact for most filers. Several provisions are still pending final IRS regulations — figures are estimates and labeled accordingly.
Frequently asked questions
How much will the One Big Beautiful Bill save me in 2026?
It depends on your income and which provisions apply. This calculator combines the tip, overtime, senior, and car-loan-interest deductions plus the Child Tax Credit and shows your total federal tax change at your actual marginal rate.
Can I claim more than one OBBBA deduction at once?
Yes — they stack, subject to each one's cap and income phase-out. The same dollar can't count for two provisions.
Are these tax breaks permanent?
Most are temporary for 2025–2028 and then expire. The increased Child Tax Credit and the permanent brackets are exceptions.
Embed this calculator (free)
Run a payroll blog, tax practice, or finance site? Add this calculator to your own page free — just copy the code. It includes a link back to FedCalc.
Methodology & sources
Combined savings = tax on (AGI − standard deduction) minus tax on (AGI − standard deduction − total OBBBA deductions), on the official 2026 brackets, plus the Child Tax Credit. Each provision follows its IRC section (§224 tips, §225 overtime, §151(d)(5) senior, §163(h)(4) car loan, §24 CTC).
Disclaimer: Educational estimate based on the 2026 OBBBA statute and IRS guidance; several provisions are still being finalized. Not tax advice. FedCalc is independent and not affiliated with the U.S. government or IRS.