States With No Tax on Overtime Pay 2026 | All 50 States

Updated April 2026 · OBBBA Tax Law

States With No Tax on Overtime
Pay in 2026

The One Big Beautiful Bill Act changed how overtime is taxed at the federal level. Here’s exactly what that means for your paycheck, state by state.

9
States with no income tax (overtime fully exempt)
41
States that still tax overtime at state level
$0
Federal income tax on overtime under OBBBA

Last updated: April 4, 2026

Overtime Take-Home Calculator 2026

See exactly how much more you keep per week with the federal overtime tax exemption — and how your state affects the final number.

Gross overtime pay (weekly) —
Federal income tax on overtime (OBBBA exempt) $0.00
FICA (Social Security + Medicare) —
State income tax on overtime —
Overtime take-home (weekly) —
vs. pre-OBBBA (estimated savings) —

All 50 States: Overtime Tax Status 2026

Federal overtime is now exempt from federal income tax under OBBBA. State tax treatment varies — filter below.

State State OT Tax State Rate (approx) Federal OT Notes
Important: The OBBBA federal overtime exemption applies to all W-2 employees regardless of state. However, states set their own income tax rules independently. Living in a no-income-tax state means your overtime pay escapes taxation at both levels — the maximum benefit possible under current law.
Frequently Asked Questions

Clear answers on how overtime taxation works under the 2026 OBBBA rules.


See Your Full Take-Home Pay

Overtime tax is one piece of the puzzle. Use our full take-home pay calculator to see your complete 2026 paycheck breakdown by state.

Full Pay Calculator →
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