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Colorado Overtime Calculator

Overtime in Colorado 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 4.4% Colorado income tax in 2026, though the federal premium is now deductible when you file.

Is overtime taxed in Colorado?

Yes, but not at a special rate: overtime in Colorado is withheld on in your normal federal brackets plus Colorado's flat 4.4% 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 6 states Colorado borders, the same ten overtime hours a week is worth $14,224 here: Wyoming keeps $944 more ($15,168), Oklahoma keeps $66 more ($14,291), Utah keeps $66 more ($14,291), Nebraska keeps $57 more ($14,281), New Mexico keeps $27 more ($14,252) and Kansas leaves $144 less ($14,080). Nebraska, New Mexico, Oklahoma, Utah and Wyoming are the only borders worth crossing for the tax alone.

See what your overtime hours actually add

Estimated take-home

$56,378 /yr

$2,168 per paycheck · $4,698/moFor $25/hr, 40 + 10 overtime hrs a week · Colorado · local tax not included · single

Take-home 79%Taxes 21%

Calculation breakdown

  • Gross salary$71,500.00
  • Federal income tax−$6,900.00
  • FICA (Social Security & Medicare)−$5,469.75
  • State & local taxes (Colorado)−$2,752.20
  • Total take-home$56,378.05

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

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

Your details

Not included
More options Deductions & details · optional
Overtime adds $14,224/yr: you keep 72.95% 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 Colorado

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

Overtime workedGrossColorado taxYou keepShare kept
5 OT hours a week$9,750$429$7,36275.5%
10 OT hours a week$19,500$858$14,22472.9%
15 OT hours a week$29,250$1,287$20,61270.5%

Colorado takes about 4.4% of that money on top of the 15% federal marginal rate and 7.65% FICA, and CO FAMLI takes another 0.44%.

How Colorado ranks on overtime hours

Across all 50 states and DC, Colorado ranks 31st for what ten overtime hours a week leaves in 2026. That is $35 less than the median state ($14,260), and $879 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, $944 more than Colorado keeps.

Colorado 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 Colorado against the states it borders:

StateState income taxYou keepvs Colorado
Colorado$858$14,224—
Kansas$1,088$14,080$144 less
Nebraska$887$14,281$57 more
New Mexico$917$14,252$27 more
Oklahoma$878$14,291$66 more
Utah$878$14,291$66 more
WyomingNone$15,168$944 more

How overtime is taxed in Colorado

Short answer: no: Colorado 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 Colorado's flat 4.4%, 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. Colorado also requires 1.5× pay after 12 hours in a workday (or 12 consecutive hours), whichever pays more than the weekly standard.
  • 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 Colorado's flat 4.4% 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 Colorado take-home pay after all taxes.

Frequently Asked Questions

On your paycheck, overtime in Colorado is ordinary wages: there is no special overtime tax rate. Federally it falls into your normal brackets, and Colorado taxes it at the same flat 4.4% as your regular wages. The federal overtime deduction you claim at filing doesn't change Colorado'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 Colorado 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 Colorado: five overtime hours a week is worth $7,362 a year after tax, ten overtime hours a week is worth $14,224 a year after tax, fifteen overtime hours a week is worth $20,612 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. Colorado also requires 1.5× pay after 12 hours in a workday (or 12 consecutive hours), whichever pays more than the weekly standard. The calculator uses the standard 1.5× multiplier.

Yes. Colorado also requires 1.5× pay after 12 hours in a workday (or 12 consecutive hours), whichever pays more than the weekly standard. Those extra hours are ordinary wages for withholding, and state-required overtime counts toward the federal overtime deduction only for hours that also pass 40 in the workweek. Our calculator uses the standard 1.5× multiplier for the overtime hours you enter.

Add regular earnings (rate × regular hours) to overtime earnings (rate × 1.5 × overtime hours), then subtract federal tax, Colorado income tax and FICA. In Colorado that leaves about 72.9% of each overtime dollar: $14,224 of the $19,500 that ten overtime hours a week adds over a year.

Against the 6 states Colorado borders, the same ten overtime hours a week is worth $14,224 here: Wyoming keeps $944 more ($15,168), Oklahoma keeps $66 more ($14,291), Utah keeps $66 more ($14,291), Nebraska keeps $57 more ($14,281), New Mexico keeps $27 more ($14,252) and Kansas leaves $144 less ($14,080). Nebraska, New Mexico, Oklahoma, Utah and Wyoming are the only borders worth crossing for the tax alone.

While everyone pays the same 4.4% rate in Colorado, the economic impact differs. A $50,000 earner pays $1,492 (3.0% of salary, after the $16,100 standard deduction) and a $300,000 earner pays $12,492 (4.2%), but the $1,492 comes out of a budget with far less room to spare. Flat taxes are proportionally equal, but not necessarily equitable: lower earners pay a larger percentage of their ability to cover necessities, while high earners benefit from not being pushed into higher brackets like they would be in progressive states.

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