Texas Overtime Calculator

Estimate Texas overtime pay with 2026 federal brackets, the qualified overtime deduction where eligible, Social Security, Medicare, and Texas's zero state income tax.

About the Texas Overtime Calculator

Texas overtime follows the federal FLSA rule: covered non-exempt workers generally earn time and a half after 40 hours in a workweek. Texas itself does not impose a personal income tax, so the state tax line stays at zero, but federal income tax and payroll taxes still reduce take-home pay.

This calculator annualizes the pay period you enter, applies the 2026 federal standard deduction and bracket table for the filing status you choose, and includes the current qualified overtime deduction estimate where eligible. Use it as a planning figure, not payroll software or a filed return.

Why Use This Texas Overtime Calculator?

Texas keeps the state income tax line at zero, but that does not make overtime tax-free. This calculator shows the annualized take-home estimate after federal income tax and payroll taxes so you can judge a workweek or overtime offer on net pay, not just gross pay.

How to Use This Calculator

  1. Enter your hourly rate and the regular and overtime hours for one pay period.
  2. Choose the overtime multiplier and pay frequency that match the job.
  3. Select your filing status so the calculator can use the correct 2026 federal assumptions.
  4. Review the gross, federal tax, payroll tax, and net pay outputs.
  5. Use the annualized view when comparing overtime scenarios.

Formula

Regular Pay = min(regular hours, 40) x Hourly Rate Overtime Pay = Overtime Hours x Hourly Rate x Overtime Multiplier Gross Annual Pay = (Regular Pay + Overtime Pay) x Pay Periods Per Year Qualified Overtime Deduction = estimated annual overtime premium, subject to IRS caps and phaseout Federal Tax = 2026 IRS brackets after the 2026 standard deduction and qualified overtime deduction Payroll Taxes = Social Security + Medicare + any Additional Medicare Texas State Tax = $0

Example Calculation

Result: $1,162 weekly net / $60,410 annual net

At $25/hr for 40 regular hours and 10 overtime hours, weekly gross pay is $1,375. Annualized at weekly pay, that is $71,500. After the 2026 single standard deduction, the qualified overtime deduction estimate, 2026 federal brackets, Social Security, Medicare, and no Texas state income tax, the estimate is about $1,161.74 per week net or $60,410.25 per year.

Tips & Best Practices

Texas Overtime Rules

Texas follows the federal FLSA overtime standard, so non-exempt workers generally earn time-and-a-half after 40 hours in a workweek. This calculator turns that premium into a paycheck estimate and keeps the Texas state tax line at zero.

What Changes Take-Home Pay

The annualized result depends on the federal standard deduction, bracket table, payroll taxes, and the qualified overtime deduction estimate where eligible. Filing status matters because it changes the federal deduction and bracket thresholds.

Use It As A Planning Model

This page is meant for estimating, not for replacing payroll records or tax filing software. If your pay includes bonuses, variable hours, or unusual withholding elections, treat the result as a planning estimate and verify the inputs before using it in a decision.

Sources & Methodology

Last updated:

Methodology

This calculator starts with regular pay for up to 40 hours and overtime pay at the selected multiplier for the extra hours you enter. It annualizes the selected pay period using the pay frequency, applies the 2026 federal standard deduction and bracket table for the filing status you choose, and estimates the qualified overtime deduction based on the overtime premium subject to the current IRS cap and phaseout rules. Married filing separately is treated as ineligible for that deduction. It then adds employee Social Security, Medicare, and Additional Medicare using the 2026 wage base and thresholds, while keeping Texas state income tax at zero.

The output is a planning estimate rather than payroll software. The overtime deduction uses annualized wages as a proxy for MAGI, so the result is directionally accurate but still simplified compared with a filed return.

Sources

Frequently Asked Questions

Does Texas tax overtime pay?

No. Texas has no state personal income tax, so overtime wages are only subject to federal income tax and payroll taxes.

What assumptions does this calculator use for 2026?

It uses the 2026 IRS bracket table, the 2026 standard deduction for your filing status, the 2026 Social Security wage base of $184,500, Medicare, Additional Medicare thresholds, and the current qualified overtime deduction estimate where eligible.

Why does filing status matter here?

Filing status changes the standard deduction and bracket thresholds, so it can materially change take-home pay even when gross pay stays the same.

What happens after I hit the Social Security wage base?

The 6.2% Social Security portion stops once annual wages exceed $184,500 in 2026. Medicare continues on all wages, and Additional Medicare can apply at higher income levels.

Does the calculator include the new overtime deduction?

Yes, for eligible filers. It estimates the federal deduction on the half-portion of qualified overtime compensation, subject to the current IRS cap and income phaseout rules. Married filing separately is not eligible for that deduction.

Are salaried employees always exempt from overtime?

No. Overtime eligibility depends on exemption status, job duties, and pay structure. If an employee is non-exempt, overtime rules still apply even if they are salaried.

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