Yes, tips are taxed
Every tip dollar is taxable income — income tax plus 7.65% FICA. If your paycheck withholding does not cover the tax on tips, you settle up (or owe) at filing. The calculator shows the full-year picture.
Why your paycheck can be $0
When most of your income is tips, the withholding on your small base wage can be entirely consumed by the tax on your tips — a $0 paycheck does not mean you owe nothing; it means the tax was prepaid from wages.
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Read the guideFAQ
Do I have to report cash tips?
Yes — all tips over $20 per month per job are reportable, cash or card. They are subject to income tax and FICA either way.
How much do servers actually take home in Delaware?
It depends almost entirely on tips. Enter your real weekly tips above — the calculator combines base wage and tips and shows the after-tax weekly number.
What is the tipped minimum wage?
Federally $2.13/hr, with the employer required to top up if tips do not bring you to the full minimum wage. Many states set a higher tipped base — check your state labor office.
Getting a lump sum on top of salary? the bonus tax calculator shows what survives withholding.
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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See our editorial policy and disclaimer. Results are estimates, not advice.