One Big Beautiful Bill Tax Calculator 2026 — What You Actually Save

Updated March 12, 2026 · 5 min read

What is the One Big Beautiful Bill?

The One Big Beautiful Bill is now signed US federal law. It delivers four major tax changes affecting tens of millions of Americans from 2025 through 2028: no federal tax on overtime pay, no federal tax on tips, an extra $6,000 deduction for seniors 65 and older, and new Trump Accounts for children.

No Tax on Overtime — Up to $12,500 Deduction

If you earn overtime pay, you can deduct up to $12,500 of that overtime from your federal taxable income each year. Phases out above $150,000 for single filers or $300,000 for married filing jointly.

At the 22% tax bracket that is up to $2,750 in annual savings. At 24%, up to $3,000.

Calculate your exact overtime savings

No Tax on Tips — Up to $25,000 Deduction

Tipped workers can deduct up to $25,000 in tip income from federal taxes annually. Applies to restaurant servers, bartenders, hotel staff, and delivery drivers.

A server earning $800/week in tips saves over $5,500 per year in federal taxes.

Calculate your exact tips savings

Senior $6,000 Deduction — Age 65+

Americans 65 and older get an additional $6,000 above-the-line deduction. Phases out at $75,000 single or $150,000 married, reducing $1 per $1 over the threshold.

Calculate your senior deduction

Trump Accounts — $1,000 Seed for Every Child

Children born in the US receive a $1,000 government seed invested in a stock index fund. Employers can contribute up to $2,500/year tax-free. At 7% average annual return, a newborn with $1,000 seed and $1,000/year employer contribution reaches 18 with over $38,000.

Calculate your child Trump Account balance