2025 Tax Year

No Tax on Overtime Calculator

Estimate your federal tax savings under the OBBBA "No Tax on Overtime" deduction (P.L. 119-21)

By Luke McMahon, Founder & Editor

·

Overtime Details
Tax Information
Total annual income including overtime (W-2 gross)
Pay Frequency
Estimated Tax Savings
$0.00
Federal income tax reduction per year
$0.00 per paycheck

Deduction Breakdown

Total Overtime Pay (1.5x) $0.00
Deductible Premium (0.5x) $0.00
Phaseout Reduction $0.00
Final Deduction $0.00
Marginal Tax Rate 0%
FICA Still Owed
The overtime deduction does not reduce FICA taxes
 $0.00

Data Sources & Legal Authority

Law P.L. 119-21 §70202 — One Big Beautiful Bill Act (signed July 4, 2025)
Deduction IRS FAQ — Qualified Overtime Compensation
Caps IRS Newsroom — OBBBA Tax Deductions
FICA IRS Publication 15 (2025) — SS 6.2% on first $176,100; Medicare 1.45%
Brackets IRS Rev. Proc. 2024-40 / OBBBA 2025 rates

About the No Tax on Overtime Deduction

The OBBBA created a new federal deduction for the overtime premium (0.5x your hourly rate), effective 2025–2028. Learn how the no tax on overtime deduction works, check who qualifies, and review the caps and income limits. See estimated savings at every bracket, or try the tips calculator.

Important Disclaimer This calculator provides estimates based on published federal tax rates and the OBBBA overtime deduction parameters. It is not financial, tax, or legal advice. Actual savings may differ based on individual circumstances. Consult a qualified tax professional for personalized advice. Not affiliated with the IRS or any government agency. Verify all figures with official IRS publications.