No Tax on Overtime Calculator
Only the FLSA Section 7 overtime premium qualifies — if you're paid time-and-a-half, just the "half" counts, not the full overtime wage. This above-the-line federal deduction (OBBBA, tax years 2025–2028) caps at $12,500 for single filers and $25,000 for joint filers, phasing out $100 per $1,000 of MAGI above $150,000 single / $300,000 joint — reaching $0 near $275,000 single / $550,000 joint. Workers using an ITIN instead of an SSN don't qualify, and married filers must file jointly (not separately) to claim it. It does not reduce FICA payroll taxes. Estimate only — not tax advice; confirm with a tax professional or the IRS before filing.
Free No Tax on Overtime calculator for the OBBBA 2025-2028 federal deduction — no signup, shows your deduction on the FLSA overtime premium, MAGI phase-out, and estimated federal tax savings.
How it works
- Pick your filing status, enter your annual qualified overtime pay (the FLSA "half" premium only) and household MAGI
- See your federal deduction (up to $12,500 single / $25,000 joint), how much the MAGI phase-out has reduced your cap, and where you sit on the phase-out range
- See an estimated federal tax savings at your 2026 marginal bracket — FICA and state taxes are not included
Frequently asked questions
Does my whole overtime paycheck qualify, or just part of it?
Just part. Only the FLSA Section 7 overtime premium qualifies — the extra "half" of time-and-a-half pay, not your full overtime wage. If you're paid straight overtime without the FLSA premium, it doesn't qualify.
Why is the cap different for single ($12,500) and joint ($25,000) filers?
The OBBBA sets the cap per return: $12,500 for single/head-of-household filers, and $25,000 for married couples filing jointly (covering overtime from either or both spouses).
Can I claim this if I file married filing separately?
No. Married taxpayers must file a joint return to claim the overtime deduction — filing separately disqualifies it entirely, per IRS guidance.
Does this reduce FICA payroll taxes?
No. It's a federal income tax deduction only — Social Security and Medicare withholding on your overtime pay is unaffected.
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2026-09-22Update history
- 2026-09-22 Launched: No Tax on Overtime calculator with filing-status-aware caps ($12,500 single / $25,000 joint), MAGI phase-out gauge, and estimated federal tax savings at 2026 marginal brackets. Entirely client-side.