One Big Beautiful Bill OBBB Calculator 2025 – Calculate Your Tax Savings

Use our Big Beautiful Bill Tax Savings Calculator to estimate how much you could save under the One Big Beautiful Bill Act, signed into law in July 2025. This major tax reform could put more money in your pocket by allowing deductions for tips and overtime pay, potentially saving you thousands each year. Let’s dive into how this bill works, check out real-world examples, and answer your questions!

What is the One Big Beautiful Bill Act?

The One Big Beautiful Bill Act (OBBB), signed into law by President Donald Trump on July 4, 2025, is a major tax reform that boosts take-home pay for American workers. Passed by the Senate on July 1, 2025 (51–50 vote) and the House on July 3, 2025 (218–214 vote), this bill delivers relief starting January 1, 2025, by:

• Deducting Tips and Overtime Pay: Workers earning less than $150,000 (single) or $300,000 (joint) can deduct up to $25,000 in tips and $12,500 in overtime pay ($25,000 for joint filers) from their federal taxes through 2028. These deductions phase out for higher incomes.
• Making 2017 Tax Cuts Permanent: Extends the Tax Cuts and Jobs Act (TCJA) lower tax rates, larger standard deduction (now $15,750 for singles, $31,500 for joint filers in 2025), and other benefits that were set to expire.
• Raising the SALT Deduction Cap: Increases the state and local tax (SALT) deduction to $40,000 through 2029 (up from $10,000), helping people in high-tax states. It phases down for incomes over $500,000 and reverts to $10,000 in 2030.
• Adding New Deductions: Includes a $6,000 deduction for seniors over 65 (2025–2028) and a $2,500 car loan interest deduction for incomes under $150,000, both starting in 2025.

The White House says typical families could save up to $10,000 a year, especially tipped workers like waiters or overtime earners like nurses and truck drivers. Our calculator below, inspired by the official version at whitehouse.gov/obbb, lets you estimate your savings with a user-friendly breakdown. Try it out to see how these changes could help you!

How Does the Big Beautiful Bill Calculator Work?

The One Big Beautiful Bill (OBBB) tax calculator is like a friendly helper that shows you how much money you could save on taxes in 2025 if the OBBB rules make tips and overtime pay tax-free. It’s super simple to use, and I’ll break it down step-by-step so you can see exactly what’s happening behind the scenes when you type in your numbers.

The calculator asks for three things:

• Weekly Base Pay: Your regular paycheck, like what you earn for your normal hours.
• Weekly Tip Amount: Any tips you get, like if you’re a waiter or a delivery driver.
• Weekly Overtime Premium Pay: Extra money you earn for working overtime hours.

Each of these can’t be more than $3,000, and when you add them up, the total has to be less than $3,077 per week. If you enter numbers that are too high, the calculator will give you a warning to try again. Let’s walk through how it turns your inputs into savings!

Step 1: Turning Weekly Pay into Yearly Income

When you enter your weekly amounts, the calculator multiplies each one by 52 (the number of weeks in a year) to figure out how much you make in a whole year. For example:

• If you put $1,000 for base pay, that’s $1,000 × 52 = $52,000 a year.
• If you put $500 for tips, that’s $500 × 52 = $26,000 a year.
• If you put $300 for overtime, that’s $300 × 52 = $15,600 a year.

It adds these up to get your total yearly income. So, $52,000 + $26,000 + $15,600 = $93,600 in this example.

Step 2: Figuring Out Normal Taxes

First, the calculator pretends the OBBB doesn’t exist and calculates how much tax you’d pay on all your income under normal 2025 rules for someone filing taxes alone (a single filer). Here’s how it does that:

• It takes your total yearly income (say, $93,600) and subtracts $15,000 (a standard deduction, which is like a tax-free amount everyone gets).
• That leaves $93,600 – $15,000 = $78,600 of income that gets taxed.
• It uses the 2025 tax rates, which are like a ladder:
  • The first $11,925 is taxed at 10%.
  • The next chunk (up to $48,475) is taxed at 12%.
  • The next chunk (up to $103,350) is taxed at 22%.
  • And so on, up to higher rates for bigger incomes.
• For $78,600, it calculates the tax step-by-step, adding up the amounts for each chunk. In this case, it comes out to about $11,551 in taxes.

Step 3: Figuring Out OBBB Taxes

Now, the calculator looks at what happens with the OBBB, where tips and overtime aren’t taxed. It only taxes your base pay:

• It takes just your yearly base pay (e.g., $52,000) and subtracts the $15,000 deduction.
• That leaves $52,000 – $15,000 = $37,000 to be taxed.
• Using the same 2025 tax rates, it calculates the tax on $37,000, which is about $4,202.

Step 4: Calculating Your Savings

The savings is the difference between the normal taxes and the OBBB taxes:

• Normal taxes: $11,551
• OBBB taxes: $4,202
• Savings: $11,551 – $4,202 = $7,349 per year.

Then, it breaks this down for you:

• Yearly Savings: $7,349
• Monthly Savings: $7,349 ÷ 12 ≈ $612.42
• Weekly Savings: $7,349 ÷ 52 ≈ $141.33

The calculator shows these numbers in a nice box so you can see exactly how much extra money you’d keep!

Step 5: Checking for Mistakes

Before it shows you the savings, the calculator makes sure your inputs are okay:

• If you enter more than $3,000 for base pay, tips, or overtime, it says, “Each field must be $3,000 or less.”
• If your total (base + tips + overtime) is $3,077 or more, it says, “Total weekly income must be less than $3,077.”
• This keeps everything fair and matches the OBBB rules.

Big Beautiful Bill Calculator Examples

The One Big Beautiful Bill (OBBB) tax calculator helps you figure out how much money you could save on taxes in 2025 if tips and overtime pay aren’t taxed. It’s super easy to use! You just enter three things: your Weekly Base Pay (your regular paycheck), Weekly Tip Amount (money from tips, like if you’re a waiter), and Weekly Overtime Premium Pay (extra pay for overtime hours). Each of these can’t be more than $3,000, and when you add them up, the total has to be less than $3,077 per week.

The calculator then tells you how much you’d save on taxes each week, month, and year because of the OBBB rules. It’s built for single filers (people filing taxes alone) and uses a standard deduction of $15,000. Let’s walk through some real-life examples to show how it works. These examples match the calculator in this post, so you can try them yourself!

Example 1: A Retail Worker with Overtime

Meet Sarah: Sarah works at a store and earns $1,000 a week as her regular pay. She doesn’t get tips, but she works overtime sometimes, earning an extra $500 a week. Let’s see her savings.

• Inputs:
  • Weekly Base Pay: $1,000
  • Weekly Tip Amount: $0
  • Weekly Overtime Premium Pay: $500
  • Total: $1,000 + $0 + $500 = $1,500 (less than $3,077, so it’s okay!)
• What Happens:
  • The calculator multiplies each number by 52 to get yearly amounts: $52,000 (base) + $26,000 (overtime) = $78,000 total income.
  • Without OBBB, Sarah pays taxes on $78,000 minus $15,000 (standard deduction), so $63,000. That’s about $8,779 in taxes.
  • With OBBB, her overtime ($26,000) isn’t taxed, so she only pays taxes on $52,000 minus $15,000 = $37,000. That’s about $4,202 in taxes.
  • Savings: $8,779 – $4,202 = $4,577 per year.
• Output:
  • Weekly Savings: ~$88.02 ($4,577 ÷ 52)
  • Monthly Savings: ~$381.42 ($4,577 ÷ 12)
  • Yearly Savings: ~$4,577

Why It Matters: Sarah saves over $380 a month because her overtime pay isn’t taxed. That’s extra cash for bills or savings!

Example 2: A Waiter with Tips

Meet Jake: Jake is a waiter who earns $800 a week in regular pay and gets $600 a week in tips. He doesn’t work overtime. Let’s check his savings.

• Inputs:
  • Weekly Base Pay: $800
  • Weekly Tip Amount: $600
  • Weekly Overtime Premium Pay: $0
  • Total: $800 + $600 + $0 = $1,400 (less than $3,077, good to go!)
• What Happens:
  • Yearly amounts: $41,600 (base) + $31,200 (tips) = $72,800 total income.
  • Without OBBB, taxes are on $72,800 – $15,000 = $57,800, which is about $7,740.
  • With OBBB, tips ($31,200) aren’t taxed, so taxes are on $41,600 – $15,000 = $26,600, about $2,954.
  • Savings: $7,740 – $2,954 = $4,786 per year.
• Output:
  • Weekly Savings: ~$92.04 ($4,786 ÷ 52)
  • Monthly Savings: ~$398.83 ($4,786 ÷ 12)
  • Yearly Savings: ~$4,786

Why It Matters: Jake’s tips are tax-free with OBBB, saving him nearly $400 a month. That’s a big deal for someone living on tips!

Example 3: A Nurse with Tips and Overtime

Meet Maria: Maria is a nurse who moonlights as a bartender. She earns $1,200 a week in regular pay, $400 in tips from bartending, and $300 in overtime pay. Let’s see her savings.

• Inputs:
  • Weekly Base Pay: $1,200
  • Weekly Tip Amount: $400
  • Weekly Overtime Premium Pay: $300
  • Total: $1,200 + $400 + $300 = $1,900 (less than $3,077, all set!)
• What Happens:
  • Yearly amounts: $62,400 (base) + $20,800 (tips) + $15,600 (overtime) = $98,800 total income.
  • Without OBBB, taxes on $98,800 – $15,000 = $83,800, about $13,359.
  • With OBBB, tips ($20,800) and overtime ($15,600) are tax-free, so taxes on $62,400 – $15,000 = $47,400, about $5,450.
  • Savings: $13,359 – $5,450 = $7,909 per year.
• Output:
  • Weekly Savings: ~$152.10 ($7,909 ÷ 52)
  • Monthly Savings: ~$659.08 ($7,909 ÷ 12)
  • Yearly Savings: ~$7,909

Why It Matters: Maria saves over $650 a month because both her tips and overtime are tax-free. That’s huge for covering expenses or saving up!

Example 4: High Earner Near the Limit

Meet Tom: Tom’s a truck driver earning $2,000 a week in regular pay and $1,000 in overtime. No tips. He’s close to the calculator’s limit, so let’s test it.

• Inputs:
  • Weekly Base Pay: $2,000
  • Weekly Tip Amount: $0
  • Weekly Overtime Premium Pay: $1,000
  • Total: $2,000 + $0 + $1,000 = $3,000 (less than $3,077, just under the limit!)
• What Happens:
  • Yearly amounts: $104,000 (base) + $52,000 (overtime) = $156,000 total income.
  • Without OBBB, taxes on $156,000 – $15,000 = $141,000, about $26,701.
  • With OBBB, overtime ($52,000) is tax-free, so taxes on $104,000 – $15,000 = $89,000, about $14,503.
  • Savings: $26,701 – $14,503 = $12,198 per year.
• Output:
  • Weekly Savings: ~$234.58 ($12,198 ÷ 52)
  • Monthly Savings: ~$1,016.50 ($12,198 ÷ 12)
  • Yearly Savings: ~$12,198

Why It Matters: Tom saves over $1,000 a month because his big overtime checks aren’t taxed. That’s a game-changer for high earners!

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