For educational purposes only — not tax, legal, or financial advice. Tax laws change frequently. Consult a qualified CPA, Enrolled Agent, or tax attorney for your specific situation.

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    No Tax on Overtime Calculator (2025–2028)

    The OBBBA "no tax on overtime" provision excludes up to $12,500 (single/HoH/MFS) or $25,000 (MFJ/QW) of FLSA overtime premium from federal income tax for tax years 2025 through 2028. FICA still applies.

    Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (deductions, credits, filing status nuances, state-specific adjustments). Always seek financial or tax advice from a qualified CPA, Enrolled Agent, or tax attorney, or contact the IRS. Read our editorial scope →

    Temporary provision — expires after tax year 2028
    Temporary provision — expires after tax year 2028. Without further legislation, this benefit is not available for 2029 and beyond.

    Your situation

    Cap is $12,500 (single/HoH/MFS) or $25,000 (MFJ/QW) of FLSA-overtime premium (the half-time portion only, not the straight-time hours).

    $

    Example: 100 OT hours × $30/hr base × 0.5 premium = $1,500 premium.

    $

    Your estimated savings

    Cap for SINGLE

    $12,500

    Excludable

    $8,000

    Federal tax savings (22% bracket)

    $1,760

    FICA still applies
    Overtime premium remains subject to Social Security and Medicare tax. The 7.65% employee FICA on $8,000 is approximately $612, unchanged.
    Only the premium portion (the extra 0.5× over base) qualifies — not the full time-and-a-half hours. State-overtime premiums (e.g. California daily OT) do not qualify unless they are also FLSA overtime.