Kentucky Overtime Calculator
Overtime in Kentucky 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 3.5% Kentucky income tax in 2026, though the federal premium is now deductible when you file.
Is overtime taxed in Kentucky?
Yes, but not at a special rate: overtime in Kentucky is withheld on in your normal federal brackets plus Kentucky's flat 3.5% 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 7 states Kentucky borders, the same ten overtime hours a week is worth $14,486 here: Tennessee keeps $683 more ($15,168), Ohio keeps $146 more ($14,632), Indiana keeps $107 more ($14,593), West Virginia leaves $227 less ($14,259), Missouri leaves $234 less ($14,252), Illinois leaves $283 less ($14,203) and Virginia leaves $439 less ($14,047). Indiana, Ohio and Tennessee are the only borders worth crossing for the tax alone.
See what your overtime hours actually add
Estimated take-home
$56,745 /yr
$2,183 per paycheck · $4,729/moFor $25/hr, 40 + 10 overtime hrs a week · Kentucky · local tax not included · single
Calculation breakdown
- Gross salary$71,500.00
- Federal income tax−$6,900.00
- FICA (Social Security & Medicare)−$5,469.75
- State income tax (Kentucky)−$2,384.90
- Total take-home$56,745.35
Gross includes regular and overtime pay; see detailed inputs for per-paycheck splits.
Estimate based on 2026 federal and Kentucky tax rules updated Oct 2026 How we calculate
Your details
More options Deductions & details · optional
Your details
Hourly Rate & Hours
Enter your hourly wage and hours worked
Regular hours (up to 40 per week)
Overtime hours at 1.5× rate ($37.50/hr)
Pay Frequency
How often you get paid
Location & Filing
Your state and filing status
More options Dependents, 401(k), HSA
Pre-Tax Deductions (Optional)
Reduce your taxable income
Percentage of gross pay
Annual Health Savings Account contribution
Estimated take-home pay
That’s $2,183 per paycheck · $4,729 per month.
For $25/hr, 40 + 10 overtime hrs a week · Kentucky · local tax not included · single
Calculation breakdown
- Gross salary$71,500.00
- Federal income tax−$6,900.00
- FICA (Social Security & Medicare)−$5,469.75
- State income tax (Kentucky)−$2,384.90
- Total take-home$56,745.35
Gross includes regular and overtime pay; see detailed inputs for per-paycheck splits.
Effective tax rate
20.6%
Total taxes (annual)
$14,754.65
You keep
79¢of every dollar
Your average dollar keeps 79¢. The next dollar you earn keeps 74¢: that’s the dashed line.
Estimate based on 2026 federal and Kentucky tax rules updated Oct 2026 How we calculate
Overtime Impact
Additional income from overtime hours
Additional Take-Home:
$14,486
You keep 74.29% of each overtime dollar
Assumptions & notes What this estimate includes and leaves out
Assumptions & Notes
- Overtime: 10.0 hours/week at 1.5× rate ($37.50/hr)
- Overtime is withheld on like regular wages. For 2025-2028 its federal premium (the "half" of time-and-a-half) is deductible when you file, so part of that tax comes back as a refund.
- Federal tax uses the 2026 standard deduction ($16100.00)
- FICA: Social Security 6.2% up to the wage base, Medicare 1.45% plus 0.9% above $200,000. 401(k) deferrals are included; HSA, FSA and commuter benefits are not.
- State income tax calculated for KY
- State tax uses 2026 rates, brackets, and standard deductions (Tax Foundation). County/city income taxes and credit phase-outs are not included.
What overtime hours are actually worth in Kentucky
On top of full-time pay at $25 an hour ($52,000 a year) in Kentucky, here is what each extra dollar survives federal tax, Kentucky income tax and FICA in 2026:
| Overtime worked | Gross | Kentucky tax | You keep | Share kept |
|---|---|---|---|---|
| 5 OT hours a week | $9,750 | $341 | $7,493 | 76.8% |
| 10 OT hours a week | $19,500 | $683 | $14,486 | 74.3% |
| 15 OT hours a week | $29,250 | $1,024 | $21,004 | 71.8% |
Kentucky takes about 3.5% of that money on top of the 15% federal marginal rate and 7.65% FICA.
How Kentucky ranks on overtime hours
Across all 50 states and DC, Kentucky ranks 16th for what ten overtime hours a week leaves in 2026. That is $226 more than the median state ($14,260), and $1,141 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, $683 more than Kentucky keeps.
Kentucky 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 Kentucky against the states it borders:
Local income tax on overtime hours in Kentucky
4 jurisdictions in Kentucky levy an income tax of their own on top of the state rate. The calculator above does not include them, so add this if you live or work in one:
| Jurisdiction | Resident rate | Cost on $71,500 |
|---|---|---|
| Covington | 3.1497% | $2,252 |
| Lexington | 2.75% | $1,966 |
| Louisville | 2.20% | $1,573 |
| Bowling Green | 2.00% | $1,430 |
How overtime is taxed in Kentucky
Short answer: no: Kentucky 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 Kentucky's flat 3.5%, 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 Kentucky's flat 3.5% 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 Kentucky take-home pay after all taxes.
Frequently Asked Questions
On your paycheck, overtime in Kentucky is ordinary wages: there is no special overtime tax rate. Federally it falls into your normal brackets, and Kentucky taxes it at the same flat 3.5% as your regular wages. The federal overtime deduction you claim at filing doesn't change Kentucky'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 Kentucky 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 Kentucky: five overtime hours a week is worth $7,493 a year after tax, ten overtime hours a week is worth $14,486 a year after tax, fifteen overtime hours a week is worth $21,004 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. Kentucky adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.
Kentucky 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 Kentucky 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, Kentucky income tax and FICA. In Kentucky that leaves about 74.3% of each overtime dollar: $14,486 of the $19,500 that ten overtime hours a week adds over a year.
Against the 7 states Kentucky borders, the same ten overtime hours a week is worth $14,486 here: Tennessee keeps $683 more ($15,168), Ohio keeps $146 more ($14,632), Indiana keeps $107 more ($14,593), West Virginia leaves $227 less ($14,259), Missouri leaves $234 less ($14,252), Illinois leaves $283 less ($14,203) and Virginia leaves $439 less ($14,047). Indiana, Ohio and Tennessee are the only borders worth crossing for the tax alone.
Kentucky's flat 3.5% rate is higher than Pennsylvania (3.07%) but lower than Illinois (4.95%). What surprises people is that property taxes can vary significantly by county, creating unexpected cost differences that aren't reflected in the income tax rate. A homeowner in one county might pay $3,000 annually in property taxes, while a homeowner in another county might pay $6,000+ for a similar property, which can offset income tax advantages.
Related Tools
- Kentucky Take-Home Pay Calculator: Full salary and hourly calculator for Kentucky
- Kentucky Hourly Paycheck Calculator: Calculate regular hourly pay in Kentucky
- No Tax on Overtime Calculator: What the federal overtime deduction adds to your refund
- Overtime Calculator: Overtime pay after taxes, for any state