Calculator
No Tax on Tips Savings Calculator
Calculate your tax savings from the OBBBA 'No Tax on Tips' federal deduction.
Try it nowEstimate your federal income tax savings under the OBBBA 'No Tax on Overtime' provision for W-2 employees. Deduct up to $12,500 (single) or $25,000 (joint) of qualified overtime compensation from your taxable income.
How to Use This Tool:
- Enter your annual overtime income (the premium portion of overtime pay).
- Select your filing status and enter your Modified AGI.
- View your qualified overtime deduction and total federal income tax saved.
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Important Financial Calculation Disclaimer & Sources
Scope & Estimative Nature:
- Applies only to W-2 employees who work overtime hours beyond 40 hours per workweek.
- Available temporarily for tax years 2025 through 2028.
Official Data Sources:
- Fair Labor Standards Act (FLSA) Overtime Provisions
- One Big Beautiful Bill Act (OBBBA) Section 2
Methodology:
- Inputs are normalized into numeric values in the browser.
- The matching FinanceUp calculation engine runs standard formulas for the selected tool.
- Results are formatted using United States currency, locale, and available country rules.
- Charts, tables, and result cards are derived from the same calculation output to keep the page internally consistent.
All calculations are estimates. Tax rates, retirement regulations, and investment fees change over time. Please verify critical values with an official professional advisor or reference the official publications cited above before taking action.
Guide & How-To
AI Overview
To calculate no tax on overtime calculator in United States (2026): Estimate your federal income tax savings under the OBBBA 'No Tax on Overtime' provision for W-2 employees. Deduct up to $12,500 (single) or $25,000 (joint) of qualified overtime compensation from your taxable income. The calculation is performed by applying the latest local rules, standard deductions, brackets, or compounding terms to your inputs to provide an instant, accurate estimate.
What is the Overtime Deduction Limit?
The maximum overtime deduction is $12,500 for Single and Head of Household filers, and $25,000 for Married Filing Jointly couples. Only the premium portion of overtime (the extra half in time-and-a-half pay) required by the Fair Labor Standards Act (FLSA) for hours worked over 40 in a week is eligible for the deduction.
MAGI Phase-Outs for Overtime Deduction?
The deduction phases out for higher earners. For Single and Head of Household filers, the deduction phases out between $150,000 and $275,000 MAGI. For Married Filing Jointly, it phases out between $300,000 and $550,000 MAGI.