Tax & Payroll
FICA Tip Credit Calculator (Form 8846)
Estimate the employer credit for Social Security and Medicare taxes paid on employees' tips.
Preparing your result…
What this calculator does
Estimates the employer FICA tip credit.
What your result means
Credit on creditable tips.
Formula
Creditable tips = max(0, tips − max(0, $5.15 × hours − cash wages)); credit = creditable tips × 7.65%
The step-by-step working for your own numbers appears with the result above and in the PDF report.
Frequently asked questions
Symbols and assumptions
- H
- Hours worked
- • Tax year 2026 figures from IRS Rev. Proc. 2025-32 unless stated.
- • Reference wage $5.15/hour per §45B.
Sources and review
Reviewed 2026-09-23 · Next review 2027-01-15
- • Eligibility of business type not verified.
- • Federal only — state and local taxes are excluded.
- • Rules change annually; figures apply to tax year 2026 only.
- • Educational estimate, not tax advice.
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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