FICA Tip Credit Calculator for Nail Salons
Turn the tips your nail technicians report into a §45B tax credit — newly available to salons starting with the 2025 tax year, at the federal $7.25 threshold.
New for 2025
Beauty and personal-care eligibility under OBBBA begins with the 2025 tax year — earlier years remain ineligible for this category.
Nail salons are beauty/personal-care employers, newly eligible for the §45B credit for tax years beginning after December 31, 2024. If your technicians report tips and earn a cash wage at or above $7.25/hour, those tips are generally fully creditable.
Enter each technician's cash wage and reported tips to see the creditable share and build a worksheet for 2025.
Beauty and personal-care eligibility under the 2025 law change is limited to covered services where tipping is customary, and the employer must have paid or incurred Social Security and Medicare taxes on those tips. This tool does not independently verify every condition; confirm with your CPA before relying on this estimate.
Threshold for this category: $7.25/hour — the current federal rate (not frozen).
Examples
Per-chair entry
Add each technician separately, or use 'apply to all' to fill a similar cash wage and tips across the team.
Frequently asked questions
Is 2025 really our first eligible year?+
Yes. OBBBA extended §45B to beauty/personal-care employers for tax years beginning after Dec 31, 2024.