Find out what the new tax breaks and 2027 wage changes mean for your paycheck
Free, private calculators for the federal deductions on overtime, tips, seniors and car-loan interest, plus 2027 minimum wage rates by state. Every number is traced to an official IRS or state government page.
Source: IRS Fact Sheet FS-2025-03 and Schedule 1-A. Deductions run for tax years 2025–2028 and phase out at higher incomes.
Why trust these numbers?
Tax and wage rules change quickly, and a lot of calculator pages online copy each other's mistakes. We start from the primary source: the IRS fact sheets, Schedule 1-A, Treasury regulations, Revenue Procedures, and each state labor agency's own announcement. When we could not confirm a figure on an official page, we say so on the page. Read how we work on the editorial policy and sources page.
These tools simplify real tax returns. Credits, state taxes, itemized deductions, Social Security taxation and other items can change your result. Use them to plan, then confirm with the IRS instructions or a tax professional. Full disclaimer.
Frequently asked questions
What are the new federal tax breaks for overtime, tips, seniors and car loans?
Four new deductions apply to tax years 2025 through 2028 and are claimed on Schedule 1-A of Form 1040: up to $12,500 ($25,000 joint) of qualified overtime premium pay, up to $25,000 of qualified tips, up to $10,000 of interest on a new U.S.-assembled personal vehicle, and an extra $6,000 per person age 65 or older. Each one phases out at higher incomes.
Do I have to itemize to claim them?
No. The IRS says each of these deductions is available whether you itemize or take the standard deduction.
Is Washington's 2027 minimum wage really $17.73?
Yes. Washington Labor & Industries announced on September 30, 2026 that the state minimum wage rises 3.5% to $17.73 per hour on January 1, 2027. Seattle's own minimum wage rises to $22.14 on the same date.
Are these calculators tax advice?
No. They are educational estimates built from published IRS rules and use simplified assumptions. See our disclaimer and talk to a tax professional about your return.
Where do your numbers come from?
Every limit, phase-out and wage rate is taken from an IRS, Treasury, U.S. Department of Labor, or state agency page that we opened and read. Each page lists its citations, and our editorial policy page explains how we verify and correct figures.