No Tax on Overtime Calculator

What this tool does

This paycheck estimator models gross-to-net pay using 2026-style federal ordinary brackets, standard deductions, Social Security up to the $184,500 wage base at 6.2%, Medicare at 1.45% plus additional Medicare above $200k annualized wages, and a wide set of state and local routines—including flat, graduated, and zero-income-tax states—with add-on fields for NYC/Yonkers, Maryland counties, Pennsylvania local EIT, and Ohio municipalities. A distinguishing feature is the optional scenario where part of overtime wages is excluded from federal taxable wages while FICA still follows current-law definitions, helping employees visualize proposed policy changes or news headlines without replacing employer payroll engines. Charts summarize effective rates, pie slices for tax categories, and a waterfall table that mirrors accounting statements.

Who should use it

Hourly workers with volatile OT, dual-job households comparing withholdings, HR generalists explaining offers, and restaurant operators budgeting labor should bookmark the page. It is especially helpful when you move between states or when local taxes apply on top of state filings. Tax professionals may use it to educate clients, but it remains an educational model—actual withholding follows IRS Publication 15-T and employer systems. Pair it with the hourly to salary calculator when you need annualized base pay before you enter pay frequency here.

How to use it

Enter gross pay, pay frequency, filing status, and Form W-4 style inputs such as dependents and extra withholding. Choose your work state and, when prompted, locality options that match your paycheck stub. Toggle the overtime exclusion model if you want to compare baseline federal taxable wages against a scenario that removes OT dollars from the federal income calculation only. Review FICA, federal, state, local, SDI, and PFML lines in the waterfall, then adjust pre-tax deductions or bonus flags to mirror your actual check. Always reconcile against your employer’s PDF because benefits, cafeteria plans, and garnishments can differ.

Example

A cook earns $1,200 base plus $350 overtime on a weekly check, files single, claims the standard deduction, and works in a state with a mid-single-digit flat rate. Baseline mode might show roughly $260 federal, $97 FICA, and $48 state, leaving near $795 net. Activating overtime federal exclusion lowers taxable wages on the OT portion only, shifting federal withholding down while Social Security and Medicare still reflect full gross—illustrating why take-home jumps are smaller than headlines imply. Export the mental model to your CPA whenever life events change W-4 elections.