About this overtime calculator

This is a free, browser-based estimator for the 2026 No Tax on Overtime deduction created by the One Big Beautiful Bill Act. It takes your regular hourly rate, your overtime hours, your filing status, and your modified adjusted gross income, and it returns the deductible half of your time-and-a-half pay, the deduction cap that applies to you after any income phaseout, and an estimate of the federal tax the deduction would save.

Where the numbers come from

The rules encoded here are the statutory figures for tax years 2025 through 2028: a qualified premium equal to half of the regular rate, a deduction cap of $12,500 for single filers and $25,000 for joint filers, and a phaseout that removes $100 of cap for every $1,000 of MAGI over $150,000 (single) or $300,000 (joint). These figures were checked against the IRS overview of the Act during the build and are stored as a dated constants module, so a future change can be added as a new year without disturbing this one.

What it does not do

It does not file your return, it does not see the rest of your tax picture, and it does not store anything you type. The tax-saved line is a first-order estimate based on the single marginal rate you choose, so your real saving can differ once brackets, credits, and state taxes are considered. Treat the output as a planning estimate and a way to sanity check your official forms, not as tax advice.

Related tools

This calculator is part of a small family covering the new 2026 deductions. You can also estimate the No Tax on Tips deduction and the car loan interest deduction, or read the plain-English overview on the 2026 Tax Rules hub.