Use our Big Beautiful Bill Tax Savings Calculator to estimate how much you could save under the proposed One Big Beautiful Bill Act. This 2025 tax reform could boost your take-home pay by exempting tips and overtime from federal income taxes, potentially saving you thousands annually. Let’s explore how this bill works, see real-world examples, and answer your questions.
What is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act, proposed in 2025, is a significant tax reform initiative backed by former President Donald Trump. Passed by the House on May 22, 2025, and currently under Senate consideration, this bill aims to provide financial relief to American workers by:
- Exempting tips and overtime pay from federal income taxes for incomes up to $150,000, with a phaseout to $200,000.
- Making permanent provisions of the 2017 Tax Cuts and Jobs Act (TCJA).
- Increasing the state and local tax (SALT) deduction cap to $40,000.
According to the White House, this bill could increase your take-home pay by up to $13,300 annually, especially if you’re a tipped worker or earn overtime. The official Big Beautiful Bill Calculator highlights these savings, and our enhanced version below provides a detailed breakdown to help you understand your potential benefits.
Big Beautiful Bill Calculator
Discover your tax savings with the One Big Beautiful Bill Act. Inspired by whitehouse.gov/obbb.
How Does the Big Beautiful Bill Calculator Work?
Our Big Beautiful Bill Tax Savings Calculator estimates your potential tax savings by comparing your federal income tax under current 2025 tax laws versus the proposed bill. Here’s how it works:
- Enter Your Weekly Earnings: Input your weekly base pay, weekly tip amount, and weekly overtime premium pay (only the extra portion above your base rate).
- Real-Time Calculation: The calculator converts your weekly inputs to annual figures (assuming 52 weeks) and applies 2025 tax brackets and standard deductions ($15,000 for single filers).
- Deductible Amount: It calculates the deductible portion of your tips and overtime based on your total income:
- Full deduction if income ≤ $150,000.
- Phaseout between $150,000 and $200,000.
- No deduction if income > $200,000.
- Tax Savings: It shows your annual and monthly savings under the proposed bill.
This calculator uses the official 2025 federal tax brackets to ensure accuracy, providing a clear picture of how the Big Beautiful Bill Act could impact your finances.
Big Beautiful Bill Calculator Examples
Let’s look at some real-world examples to see how the Big Beautiful Bill Act could benefit different workers:
Example 1: Restaurant Server (Tipped Worker)
Profile: Sarah, a server in a busy restaurant, earns a weekly base pay of $300, receives $500 in tips per week, and has no overtime.
Inputs:
- Weekly Base Pay: $300
- Weekly Tip Amount: $500
- Weekly Overtime Premium Pay: $0
Result: Sarah’s annual savings are approximately $2,600, or about $217 per month, thanks to the tax exemption on her tips.
Example 2: Factory Worker (Overtime Earner)
Profile: Mike, a factory worker, earns a weekly base pay of $800 and works 10 overtime hours at a base rate of $20/hour, with an overtime rate of $30/hour (premium: $10/hour × 10 hours = $100).
Inputs:
- Weekly Base Pay: $800
- Weekly Tip Amount: $0
- Weekly Overtime Premium Pay: $100
Result: Mike saves around $1,040 annually, or $87 per month, by not paying federal taxes on his overtime premium.
Example 3: High-Income Professional (Phaseout)
Profile: Emily, a consultant, earns a weekly base pay of $2,500, receives $200 in tips from client events, and has $300 in overtime premium pay.
Inputs:
- Weekly Base Pay: $2,500
- Weekly Tip Amount: $200
- Weekly Overtime Premium Pay: $300
Result: Emily’s total income ($156,000) triggers a partial phaseout, resulting in smaller savings of about $1,200 annually, or $100 per month.
Frequently Asked Questions (FAQs)
What is the Big Beautiful Bill Act 2025?
The Big Beautiful Bill Act 2025 is a proposed tax reform that aims to exempt tips and overtime pay from federal income taxes for workers earning up to $150,000 annually, with a phaseout to $200,000. It also extends provisions of the 2017 TCJA and increases the SALT deduction cap to $40,000. Learn more at whitehouse.gov/obbb.
Who qualifies for the Big Beautiful Bill tax exemptions?
Workers with incomes up to $150,000 qualify for full exemptions on tips and overtime pay. If your income is between $150,000 and $200,000, the exemption phases out. Incomes above $200,000 do not qualify for these deductions.
How do I calculate my overtime premium pay?
Calculate the premium portion of your overtime pay by subtracting your base hourly rate from your overtime rate, then multiply by your overtime hours. For example, if your base rate is $20/hour and overtime rate is $30/hour, the premium is $10/hour. For 5 overtime hours, enter $50 (5 × $10) as your weekly overtime premium pay.
Are the calculator’s results accurate for 2025 taxes?
The calculator uses 2025 federal tax brackets and standard deductions ($15,000 for single filers) for estimation. However, actual savings may vary based on final legislation, additional deductions, or other factors. Consult a tax professional for precise advice.
Can I use this calculator for monthly or annual inputs?
This calculator uses weekly inputs to match the official Big Beautiful Bill Calculator. To estimate savings, enter your average weekly base pay, tips, and overtime premium pay. The calculator converts these to annual figures for tax calculations.
Sources and Additional Resources
For more information on the One Big Beautiful Bill Act and its potential impact on your taxes, check out these credible sources:
- White House – Official Big Beautiful Bill Calculator: Explore the official calculator and learn about the bill’s provisions.
- White House – 50 Wins in the One Big Beautiful Bill: Discover 50 reasons why this bill could benefit Americans.
- Tax Foundation – Big Beautiful Bill Analysis: An in-depth analysis of the bill’s pros and cons.
- Kiplinger – No Tax on Tips Bill Approved: Details on the no-tax-on-tips provision.
- FactCheck.org – Checking the Math on Big Beautiful Bill Claims: Fact-checking the bill’s financial claims.
Ready to Estimate Your Savings?
Use our Big Beautiful Bill Tax Savings Calculator above to see how much you could save under this 2025 tax reform. Share this tool with friends and family to help them understand the potential benefits of the One Big Beautiful Bill Act.Learn More at White House