Who we are
Shiftips is an independent project focused on tools for tipped workers. We are not a law firm or a CPA practice. The calculators on this site are educational — meant to help you sanity-check what your shift, your tip-out, or your W-2 actually says. For tax filing, we point you at the IRS forms and a tax professional.
No Tax on Tips Estimator
- $25,000 statutory cap and 2025–2028 effective period: One Big Beautiful Bill Act (OBBBA), signed July 4, 2025.
- "Qualified tips" definition (voluntary, listed occupation, not a service charge): Treasury & IRS final regulations, 91 Fed. Reg., April 13, 2026.
- 2025 single-filer marginal tax brackets: IRS Rev. Proc. 2024-40.
- What we don't do: the MAGI phase-out for high earners ($150K single / $300K joint). Below the phase-out, the math is the cap × bracket. Above it, talk to a tax pro.
Tip-Out Calculator
- Two industry-standard tip-out methods: percentage-of-sales and tip-pool by hours. Common ranges (1–3% bar, 1–2% bussers, 0.5–1% runners) reflect typical full-service restaurant practice; your house rules govern.
- Tip-out reduces your reportable tip income for federal purposes: IRS Publication 531.
- What we don't do: state-specific tip-pool legality. Some states restrict who can be in a pool — check state DOL.
Take-Home Hourly Rate Calculator
- Take-home = (hours × wage) + card tips + cash tips − tip-out, divided by hours.
- State tipped minimum wages: U.S. DOL Minimum Wages for Tipped Employees, current to most recent published table.
- What we don't do: federal or FICA withholding. The number you see is gross take-home before tax; FICA still applies to all tip income.
W-2 Tip Check (Box 7 Reconciler)
- W-2 Box 7 ("Social security tips"): IRS Form W-2 instructions.
- Form 4137 for unreported tip income: IRS Form 4137.
- Reporting threshold ($20/month) and timing: IRS Publication 531.
- What we don't do: file anything for you. We surface the gap; you and your payroll/CPA handle the next step.
Update cadence
Each calculator and article shows a "Last reviewed" date in the hero. We update when a source materially changes — new IRS regulations, a tax bracket update, a Treasury final rule. Cosmetic changes don't bump the date.
General information, not tax advice. Confirm with a tax professional before relying on any number for a filing decision.