US Tax Calculators
No Tax on Overtime Calculator
Estimate your federal deduction on qualified overtime pay under the new "no tax on overtime" law, for tax years 2025 through 2028.
This is a rough estimate for education, not tax advice. It only covers the extra overtime premium required by the Fair Labor Standards Act, not your full overtime paycheck, and this deduction has no effect on FICA or state tax in most states. Nothing you type is sent anywhere.
How "no tax on overtime" works
The OBBBA lets eligible workers deduct qualified overtime compensation from federal taxable income, up to $12,500 a year ($25,000 for married couples filing jointly), for tax years 2025 through 2028. Only the extra "half-time" premium required by the Fair Labor Standards Act counts, not your entire overtime paycheck; your employer is required to report the qualifying amount separately on your W-2. The deduction phases out by $100 for every $1,000 of MAGI above $150,000 (single, head of household) or $300,000 (married filing jointly).
Frequently asked questions
Does this cover all my overtime pay?
No, only the FLSA overtime premium (the extra half-time on top of your regular rate), not straight-time hours worked or the base portion of time-and-a-half pay.
Do I need to itemize?
No, it is an above-the-line deduction you can claim in addition to the standard deduction.
What if I'm married and file separately?
Married taxpayers generally must file a joint return to claim this deduction.
Related: the no tax on tips calculator and the quarterly tax estimator.