Florida tips calculator for 2026

FICA still applies to reported tips

“No tax on tips” is a federal income-tax deduction, not an exclusion from Social Security or Medicare wages. Reported tips remain subject to FICA and may be included in payroll withholding.

Qualified-tip deduction

For tax years 2025 through 2028, eligible taxpayers may deduct up to $25,000 of qualified tips. The deduction phases out by $100 for each $1,000 of modified adjusted gross income above $150,000, or $300,000 for married couples filing jointly. Eligibility is limited to occupations that customarily and regularly received tips before 2025; review the IRS guidance and occupation-list links.

Florida tipped minimum wage

Florida’s tipped cash wage is the standard rate minus a maximum $3.02 tip credit: $10.98 before September 30, 2026 and $11.98 beginning that date. See the Florida minimum-wage schedule.

Reporting tips

Employees generally report cash tips to the employer, commonly using Form 4070 or an employer system, so payroll can withhold applicable taxes. See IRS tip recordkeeping and reporting guidance.