Overtime Paycheck Calculator
OBBBA (2025–2028) may allow a federal income tax deduction for the premium portion of qualified overtime (the extra 0.5× in time-and-a-half). Caps: $12,500 single / $25,000 MFJ. FICA still applies to full overtime wages.
What to enter: Salary or hourly rate is required. Everything else can be left blank if it does not apply — blank fields count as $0 or use the default shown in the field.
Income
Deductions (per paycheck)
All fields in this section are optional. Leave blank if you have no deductions of that type.
Overtime tax FAQ
How is hourly paycheck tax calculated with overtime?
Hourly gross pay includes regular hours plus overtime (often 1.5× after 40 hours per week). All taxable wages are subject to federal, state, and FICA withholding unless a specific deduction applies. OBBBA (2025–2028) may allow an income tax deduction for the premium portion of qualified overtime when you file — employers may still withhold on full gross pay.
Is overtime taxed at a higher rate?
Overtime is taxed at the same marginal income tax rates as regular pay — there is no special overtime tax bracket. Because overtime increases total income, it can push you into a higher bracket for that pay period in withholding estimates. OBBBA may reduce federal income tax on the premium portion when you file, not necessarily on each paycheck.
What is the no tax on overtime rule (OBBBA)?
For tax years 2025–2028, qualified overtime premium wages (the extra half of time-and-a-half under FLSA) may qualify for a federal income tax deduction when you file, up to $12,500 (single) or $25,000 (married filing jointly), with income phase-outs. This does not eliminate FICA on overtime and may not change employer withholding until IRS guidance is fully implemented.
How much is Social Security and Medicare tax on my paycheck?
Employees pay 6.2% Social Security on wages up to the annual wage base ($184,500 in 2026) and 1.45% Medicare on all wages. Once year-to-date wages exceed $200,000, employers also withhold 0.9% Additional Medicare Tax on amounts above that threshold. These FICA taxes are separate from federal income tax.