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.

Overtime Tax Deduction Calculator 2026 (OBBBA-Compliant)

Updated May 2026: Calculate your exact take-home pay with the new One Big Beautiful Bill Act (OBBBA) provision that lets you deduct up to $12,500 of overtime income from federal taxable income. Free, no signup, and mobile-optimized.

How This Overtime Tax Calculator Works

This tool estimates your 2026 net pay using the latest IRS guidelines and the OBBBA overtime income deduction. Here’s what it factors in:

✅ Federal income tax using 2026 projected brackets
✅ OBBBA Deduction: Up to $12,500 of overtime pay removed from taxable income
✅ FICA taxes: 7.65% (Social Security + Medicare)
✅ State tax estimates based on your selected state’s average effective rate
❌ Excludes: Local taxes, 401(k), health premiums, or HSA/FSA deductions

Why the 2026 Overtime Deduction Matters

Prior to 2026, overtime pay was taxed at the same rate as regular wages. Under the One Big Beautiful Bill Act, eligible non-exempt workers can now deduct up to $12,500 of overtime earnings from their federal taxable income. For a worker in the 22% bracket, that’s up to $2,750 in federal tax savings—plus additional state tax relief depending on where you live.

This calculator applies the deduction automatically when you enter your estimated annual overtime pay, giving you a realistic view of your post-OBBBA take-home pay.

Frequently Asked Questions

Who qualifies for the 2026 overtime tax deduction?

Non-exempt employees covered by the Fair Labor Standards Act (FLSA) who receive overtime pay at 1.5x their regular rate. Salaried exempt workers, independent contractors, and gig workers do not qualify.

Is the $12,500 deduction per pay period or per year?

It’s an annual cap. You can deduct up to $12,500 of overtime income across the entire tax year. Any overtime earned beyond that threshold is taxed at your normal marginal rate.

Does this calculator include state overtime rules?

It applies the federal OBBBA deduction and estimates state tax using average effective rates. States like California, New York, and Illinois have their own overtime thresholds, but the federal deduction applies regardless of state law.

How accurate is this calculator?

It’s designed for estimation purposes using 2026 IRS projections and published state revenue data. Actual withholdings may vary based on employer payroll settings, pre-tax deductions, and local tax jurisdictions.

Disclaimer: This calculator is for educational and planning purposes only. It does not constitute tax, legal, or financial advice. Tax laws are subject to change. Consult a qualified CPA or tax professional for personalized guidance.