How does the tip credit estimator work?

Enter the number of tipped employees and the tips they report, and the estimator applies the employer share of FICA tax, 7.65%, to your reported tips. It shows a range because the exact credit depends on how much of the tips sits above the minimum wage offset in your state and pay structure. Your exact figure comes from payroll records, which the free eligibility check reviews.

Is the estimate a guarantee?

No. It is an estimate only, not a guarantee and not tax advice. The actual credit depends on payroll records, qualifying wages, and the tax law for each year claimed.

What does it cost to claim the FICA tip credit?

The eligibility check is free. There are no upfront costs and no out-of-pocket money. You pay only if a credit is secured. The work is done on a success fee basis only, and if no credit is secured, there is nothing to pay.

FICA tip credit estimator | RestaurantFICA

The FICA tip credit is worth 7.65% of the tips your employees report, credited dollar for dollar against your income tax. Enter two numbers below for an estimated range for your business. It takes about a minute and needs no personal details. There are no upfront costs and no out-of-pocket money. You pay only if a credit is secured.

Your numbers

Type of business

Tipped employees on payroll

Average reported tips per employee, per year ($)

Or leave this blank and enter total reported tips instead.

Total reported tips per year, all staff ($), optional

Prior tax years to include

Restaurants can claim up to 3 prior tax years. Beauty businesses claim the 2025 tax year and forward, so prior years do not apply.

Your estimated credit range

There are no upfront costs and no out-of-pocket money. You pay only if a credit is secured.

Confirm my exact number, free

The free eligibility check reviews your payroll records and confirms the exact figure.

Have us call you

Prefer to talk it through? Pick a date and time below and we will call you then. Your details are verified before anything is booked, so the slot you pick is the slot you get. There are no upfront costs and no out-of-pocket money. You pay only if a credit is secured.

Your name

Business name

Email (optional if you give a phone)

Phone (optional if you give an email)

Callback date

Weekdays only, within the next 14 days.

Callback time

Between 9 AM and 6 PM in your timezone.

How the estimate is calculated

The credit equals the employer share of FICA tax, 7.65%, paid on qualifying reported employee tips. The high end of the range assumes the full amount of reported tips qualifies, which is typical where staff are paid at or above the minimum wage before tips, as many states require. The low end applies the federal minimum wage offset: the first portion of tips that brings a tipped wage up to the federal minimum wage does not generate credit. Where your business lands depends on your state and pay structure. Multi-year totals assume similar reported tip volume in each year counted.

This is an estimate only, not a guarantee and not tax advice. Your actual credit depends on your payroll records, qualifying wages, and the tax law for each year claimed.

Common questions

Why a range and not one number? Because the exact credit depends on payroll records and on how much of the reported tips sits above the minimum wage offset in your state. The free eligibility check pins down the exact figure.

What does it cost? The eligibility check is free. There are no upfront costs and no out-of-pocket money. You pay only if a credit is secured. If no credit is secured, there is nothing to pay.

Why have I never heard of this? Most accountants never mention it because they are not aware of it. The credit sits in a narrow part of the tax code that general practice accountants rarely handle.