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Arizona Overtime Calculator

Overtime in Arizona is withheld on at your normal federal rate: there is no separate overtime tax rate. Federal law sets overtime at 1.5× your regular hourly rate past 40 hours in a workweek, and those hours face federal income tax, FICA of 7.65%, and a flat 2.5% Arizona income tax in 2026, though the federal premium is now deductible when you file.

Is overtime taxed in Arizona?

Yes, but not at a special rate: overtime in Arizona is withheld on in your normal federal brackets plus Arizona's flat 2.5% income tax, like your regular hours. For 2025-2028 the federal premium, the "half" of time-and-a-half, is also deductible when you file, up to $12,500 ($25,000 married filing jointly). Bigger checks can have more withheld up front because withholding is calculated per paycheck, but that evens out on your tax return. Against the 5 states Arizona borders, the same ten overtime hours a week is worth $14,681 here: Nevada keeps $488 more ($15,168), Utah leaves $390 less ($14,291), New Mexico leaves $429 less ($14,252), Colorado leaves $456 less ($14,224) and California leaves $1,104 less ($13,576). Nevada is the only border worth crossing for the tax alone.

See what your overtime hours actually add

Estimated take-home

$57,745 /yr

$2,221 per paycheck · $4,812/moFor $25/hr, 40 + 10 overtime hrs a week · Arizona · single

Take-home 81%Taxes 19%

Calculation breakdown

  • Gross salary$71,500.00
  • Federal income tax−$6,900.00
  • FICA (Social Security & Medicare)−$5,469.75
  • State income tax (Arizona)−$1,385.00
  • Total take-home$57,745.25

Gross includes regular and overtime pay; see detailed inputs for per-paycheck splits.

Estimate based on 2026 federal and Arizona tax rules updated Oct 2026 How we calculate

Your details

More options Deductions & details · optional
Overtime adds $14,681/yr: you keep 75.29% of each overtime dollar.
No tax on overtime: $6,500 of this overtime is the deductible “half”. Claimed on your federal return, that's about $1,280 more back at tax time. See your refund →

What overtime hours are actually worth in Arizona

On top of full-time pay at $25 an hour ($52,000 a year) in Arizona, here is what each extra dollar survives federal tax, Arizona income tax and FICA in 2026:

Overtime workedGrossArizona taxYou keepShare kept
5 OT hours a week$9,750$244$7,59077.8%
10 OT hours a week$19,500$488$14,68175.3%
15 OT hours a week$29,250$731$21,29672.8%

Arizona takes about 2.5% of that money on top of the 15% federal marginal rate and 7.65% FICA.

How Arizona ranks on overtime hours

Across all 50 states and DC, Arizona ranks 11th for what ten overtime hours a week leaves in 2026. That is $421 more than the median state ($14,260), and $1,336 more than Oregon, where the same ten overtime hours a week leaves $13,345.

The best outcome anywhere is $15,168 in Alaska and the other states with no wage income tax, $488 more than Arizona keeps.

Arizona overtime hours against the states next door

Crossing a state line changes what the same overtime hour is worth without changing what you are paid. Here is ten overtime hours a week in Arizona against the states it borders:

StateState income taxYou keepvs Arizona
Arizona$488$14,681—
California$1,338$13,576$1,104 less
Colorado$858$14,224$456 less
NevadaNone$15,168$488 more
New Mexico$917$14,252$429 less
Utah$878$14,291$390 less

How overtime is taxed in Arizona

Short answer: no: Arizona does not tax overtime at a higher rate, and neither does the IRS. Overtime pay (1.5× your regular rate past 40 hours/week) is withheld on as ordinary income: normal federal brackets plus Arizona's flat 2.5%, like your regular hours. Big overtime checks can have more withheld up front because withholding is calculated per paycheck, but that evens out on your tax return. Here's the full picture.

  • Overtime rate is 1.5× your regular pay: Federal law requires at least 1.5 times your regular hourly rate for hours worked beyond 40 in a workweek. Some states and employers offer higher rates.
  • Withheld as ordinary income: There is no special tax rate for overtime pay. It's added to your regular wages and withheld on in the same federal brackets plus Arizona's flat 2.5% income tax.
  • The premium is deductible federally (2025-2028): When you file, the extra half of time-and-a-half the FLSA requires comes off your federal taxable income: up to $12,500, or $25,000 married filing jointly, phasing out above $150,000 of income. Social Security and Medicare still apply.
  • Higher income can mean higher withholding: Because overtime increases your total paycheck, your employer annualizes the higher amount when calculating withholding, which can result in a higher rate on the overtime portion.
  • You always take home more by working overtime: Even in a high tax bracket, you keep more than 50% of each overtime dollar. Higher taxes on overtime never mean you'd be better off working fewer hours.

Enter your hourly rate and overtime hours below to see your exact Arizona take-home pay after all taxes.

Frequently Asked Questions

On your paycheck, overtime in Arizona is ordinary wages: there is no special overtime tax rate. Federally it falls into your normal brackets, and Arizona taxes it at the same flat 2.5% as your regular wages. The federal overtime deduction you claim at filing doesn't change Arizona's withholding, which still applies to every overtime dollar.

Not fully. For 2025-2028 the federal premium, the "half" of time-and-a-half, is also deductible when you file, up to $12,500 ($25,000 married filing jointly). It's claimed on Schedule 1-A, phases out above $150,000 of income ($300,000 joint), and doesn't reduce Social Security or Medicare. It's a federal deduction, so don't assume Arizona income tax follows it. Your employer still withholds on overtime unless you claim the deduction on a new W-4, so for most people it shows up as a bigger refund.

Overtime can push your annualized income into a higher bracket, but only the dollars above the threshold are taxed at the higher rate: you always take home more by working the hours. Priced for Arizona: five overtime hours a week is worth $7,590 a year after tax, ten overtime hours a week is worth $14,681 a year after tax, fifteen overtime hours a week is worth $21,296 a year after tax, against $19,500 gross on the middle figure.

Under the Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular rate beyond 40 hours in a workweek. Arizona adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

Arizona follows the federal FLSA standard: at least 1.5× your regular rate for hours beyond 40 in a workweek, with no additional daily-overtime requirement. If you believe you're owed overtime, the Arizona Department of Labor is the place to check. Our calculator uses the standard 1.5× multiplier.

Add regular earnings (rate × regular hours) to overtime earnings (rate × 1.5 × overtime hours), then subtract federal tax, Arizona income tax and FICA. In Arizona that leaves about 75.3% of each overtime dollar: $14,681 of the $19,500 that ten overtime hours a week adds over a year.

Against the 5 states Arizona borders, the same ten overtime hours a week is worth $14,681 here: Nevada keeps $488 more ($15,168), Utah leaves $390 less ($14,291), New Mexico leaves $429 less ($14,252), Colorado leaves $456 less ($14,224) and California leaves $1,104 less ($13,576). Nevada is the only border worth crossing for the tax alone.

Yes, at every income level. Arizona's 2.5% is the lowest flat rate in the country, and its standard deduction ($16,100 single) lowers the effective rate further. A $75,000 earner pays $1,473 in Arizona, compared with $2,484 in North Carolina (3.99% flat) and $3,713 in Illinois (4.95% flat). At $200,000, Arizona's $4,598 compares with $6,140 in Pennsylvania (3.07% flat).

Arizona taxes income above the standard deduction ($16,100 single, $32,200 married) at a flat 2.5%, the lowest rate of any flat-tax state. A $75,000 earner pays $1,473 a year (2.0% of salary), and a raise is always taxed at the same 2.5%, so there is no bracket to be pushed into.

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