Tip Tax Savings Calculator for Golf Caddies

Golf caddies receive some of the highest per-hour tips in the service industry — and those tips are now 100% exempt from federal income tax under the OBBBA (2025–2028). Whether you caddie at a private club or a public course, your player tips are now federally tax-free.

Average Annual Tips
$10,000–$30,000
Federal Tax Savings Range
$1,200–$6,600
Exemption Period
2025–2028

Your Golf Caddie Tip Tax Calculator

Pre-filled with typical values for golf caddies. Adjust to match your actual earnings.

Your Annual Tax Savings

$578
per year in federal income tax on tips
Annual Tip Income
$15,625
Federal Tax Saved
$578
Marginal Federal Rate
10.0%
FICA Still Owed on Tips
$1,195
Annual Base Pay
$6,250
Total Annual Income
$21,875

Tax Notes for Golf Caddies

  • Golf caddie tips (also called gratuities) are among the highest per-round tips in service industries.
  • Caddies at private clubs often earn $50–$150 per bag per round in tips.
  • Golf caddying is seasonal in most states — typical season is 25–35 weeks per year.
  • FICA taxes still apply to all tip income.
  • Some caddies work through caddie master programs and are classified as employees; others are independent contractors.

Three Calculation Examples for Golf Caddies

Weekend Caddie — Public Course

A part-time caddie at a public course. Tips average $15/hour on weekend rounds — $5,625/year.

Hourly wage: $8Tips/hour: $15Hours/week: 15Weeks/year: 25
Annual tips: $5,625  |  Approx. federal savings at 22%: $1,238

Regular Caddie — Private Club

A caddie at a private club during the golf season. Tips of $25/hour on 25 hours/week generate $15,625/year.

Hourly wage: $10Tips/hour: $25Hours/week: 25Weeks/year: 25
Annual tips: $15,625  |  Approx. federal savings at 22%: $3,438

Senior Caddie — Prestigious Club

An experienced caddie at a prestigious private club with affluent members. Tips of $40/hour generate $36,000/year.

Hourly wage: $15Tips/hour: $40Hours/week: 30Weeks/year: 30
Annual tips: $36,000  |  Approx. federal savings at 22%: $7,920

Frequently Asked Questions

Do golf caddie tips qualify for the OBBBA exemption?

Yes. Tips (gratuities) received by golf caddies from players qualify for the federal income tax exemption under the OBBBA. Caddie tips are among the most clearly qualifying tip income — they are direct voluntary payments from customers (golfers) for personal services rendered.

I caddie at a private club — am I an employee or independent contractor?

It varies by club. Some clubs employ caddies directly (W-2); others contract through caddie master programs or classify caddies as self-employed. Either way, your tip income qualifies for the OBBBA exemption — employees claim it on Form 1040, independent contractors on Schedule C.

How do I handle the seasonal nature of caddying for the exemption?

The exemption applies to all qualifying tip income earned in the tax year, regardless of whether you work seasonally. If you caddie for 25 weeks and earn $15,000 in tips, the full $15,000 qualifies for the exemption.

Do caddie master fees or bag storage tips also qualify?

Tips received directly by you from golfers qualify. Fees paid to the caddie master program that are not passed to you do not count. If the club distributes a portion of bag storage tips to you, that portion qualifies.

Related Tools and Resources

Use the full No Tax on Tips Calculator for any profession. Also check the No Tax on Overtime Calculator if you also work overtime hours, and the OBBBA FAQ for answers on eligibility, filing, and FICA taxes.

State-specific calculators: FloridaCaliforniaArizonaTexasGeorgia