Tip Income Calculator

Calculate total income from tips plus base wages, including estimated tax on tip income.

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How It Works

All tip income is taxable and must be reported to the IRS. The federal tipped minimum wage is $2.13/hour, but employers must ensure total compensation (wages + tips) meets the regular minimum wage. Tips over $20/month must be reported to your employer for tax withholding. Many tipped workers are surprised by their tax bill because FICA (7.65%) applies to all tip income on top of income tax.