How accurate is this US take-home pay calculator?

This calculator provides estimates based on 2026 federal tax brackets, FICA payroll tax rates, and estimated state income tax rates. Actual paycheck amounts may vary depending on deductions, credits, benefits, and employer-specific withholdings.

Does this paycheck calculator include Social Security and Medicare?

Yes. The calculator includes FICA payroll taxes, which consist of Social Security and Medicare contributions, to estimate your net pay accurately.

Does this calculator include 401(k) or health insurance deductions?

No. Retirement contributions, health insurance premiums, and other voluntary pre-tax benefits are not automatically included unless entered manually.

Can I compare take-home pay between different states?

Yes. Because state income taxes vary widely, this calculator allows you to compare net income estimates across different U.S. states.

2026 Overtime Tax Calculator

Maximize Your $12,500 OBBB Act “No Tax on Overtime” Deduction

Filing Status

Estimated 2026 Overtime Pay (Gross $)

Qualified OBBB Deduction: $0

Estimated Federal Tax Savings: $0

*Based on average 22% marginal rate. Actual savings depend on total MAGI.

What is the “No Tax on Overtime” Deduction?

Signed into law in July 2025, the One Big Beautiful Bill Act (OBBBA) introduced a landmark federal income tax deduction for “qualified overtime compensation”. This allows eligible workers to deduct up to $12,500 ($25,000 for joint filers) of their overtime pay from their taxable income for tax years 2025 through 2028.

Key Rule: The “And-a-Half” Provision

The deduction applies specifically to the premium portion of your overtime pay. If you earn $20/hr and $30/hr for overtime, only the extra $10/hr (the “half” in time-and-a-half) qualifies for the deduction.

Who Qualifies for the 2026 Overtime Tax Break?

Eligibility is determined by your employment status and income. To qualify, you must:

Be a non-exempt employee under the Fair Labor Standards Act (FLSA).
Work more than 40 hours per week at a rate of at least 1.5x your regular pay.
Earn below the phase-out threshold ($150,000 for single filers; $300,000 for joint).

Note: Payroll taxes (Social Security and Medicare) still apply to overtime pay; the OBBB Act only reduces Federal Income Tax liability.

Reporting Changes: Form W-2 for 2026

Starting in tax year 2026, the IRS requires employers to separately report qualified overtime compensation. Look for Box 12, Code “TT” on your 2026 W-2 to find the exact amount you can deduct when filing.