Tip Tax Savings Calculator for Hotel Housekeeping Staff

Hotel housekeeping staff receive tips from guests for room cleaning services — and those tips are now 100% exempt from federal income tax under the OBBBA (2025–2028). Even tips left on the nightstand on checkout day count as qualifying income that is now federally tax-free.

Average Annual Tips
$3,000–$8,000
Federal Tax Savings Range
$360–$1,760
Exemption Period
2025–2028

Your Housekeeper Tip Tax Calculator

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

Your Annual Tax Savings

$760
per year in federal income tax on tips
Annual Tip Income
$7,000
Federal Tax Saved
$760
Marginal Federal Rate
12.0%
FICA Still Owed on Tips
$536
Annual Base Pay
$24,500
Total Annual Income
$31,500

Tax Notes for Housekeepers

  • Tips left in rooms by departing guests qualify — even if found after checkout.
  • Tips passed directly by guests during their stay also qualify.
  • FICA taxes still apply to all tip income.
  • Housekeeping at luxury and resort hotels typically earns more in tips than budget properties.
  • You must still report all tips even though they are now federally exempt.

Three Calculation Examples for Housekeepers

Housekeeper — Budget Hotel

A housekeeper at a budget hotel. Tips average $2/hour (occasional room tips) — $3,500/year.

Hourly wage: $13Tips/hour: $2Hours/week: 35Weeks/year: 50
Annual tips: $3,500  |  Approx. federal savings at 22%: $770

Housekeeper — Full-Service Hotel

A housekeeper at a full-service hotel. Tips of $4/hour on 35 hours generate $7,000/year.

Hourly wage: $14Tips/hour: $4Hours/week: 35Weeks/year: 50
Annual tips: $7,000  |  Approx. federal savings at 22%: $1,540

Housekeeper — Luxury Resort

A housekeeper at a luxury resort. Generous guests tip $8+/hour — $16,000/year in tip income.

Hourly wage: $18Tips/hour: $8Hours/week: 40Weeks/year: 50
Annual tips: $16,000  |  Approx. federal savings at 22%: $3,520

Frequently Asked Questions

Do hotel housekeeper tips qualify for the OBBBA exemption?

Yes. Tips left by guests for housekeeping staff qualify for the federal income tax exemption under the OBBBA. This includes tips left in rooms, tips handed directly to housekeepers, and any voluntary gratuity from guests for room cleaning and turndown services.

What if a guest leaves a tip on checkout day after I clean their room?

Tips left in a room on checkout day — even if you find them after the guest has left — qualify as tip income for the period they were received. Report them in the pay period when you received them.

How should housekeepers track tip income?

Keep a daily log noting the room number, date, and tip amount received. Many hotels provide tip envelopes that help guests leave tips; if your hotel uses these, keep records of what you receive. Even though tips are now federally exempt, you must still report and pay FICA taxes on them.

Are turndown service tips also covered?

Yes. Tips received for turndown service, extra towels, special room requests, or any other housekeeping-related service qualify equally for the OBBBA tip exemption.

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: NevadaHawaiiFloridaCaliforniaNew York