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Minnesota Overtime Calculator

Overtime in Minnesota 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 Minnesota's graduated income tax (5.35% to 9.85%) in 2026, though the federal premium is now deductible when you file.

Is overtime taxed in Minnesota?

Yes, but not at a special rate: overtime in Minnesota is withheld on in the same federal brackets as regular wages plus Minnesota's graduated income tax (5.35% to 9.85%). 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 4 states Minnesota borders, the same ten overtime hours a week is worth $13,842 here: South Dakota keeps $1,326 more ($15,168), North Dakota keeps $1,191 more ($15,033), Iowa keeps $585 more ($14,427) and Wisconsin keeps $418 more ($14,260). Iowa, North Dakota, South Dakota and Wisconsin are the only borders worth crossing for the tax alone.

See what your overtime hours actually add

Estimated take-home

$55,792 /yr

$2,146 per paycheck · $4,649/moFor $25/hr, 40 + 10 overtime hrs a week · Minnesota · single

Take-home 78%Taxes 22%

Calculation breakdown

  • Gross salary$71,500.00
  • Federal income tax−$6,900.00
  • FICA (Social Security & Medicare)−$5,469.75
  • State income tax (Minnesota)−$3,338.61
  • Total take-home$55,791.64

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

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

Your details

More options Deductions & details · optional
Overtime adds $13,842/yr: you keep 70.99% 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 Minnesota

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

Overtime workedGrossMinnesota taxYou keepShare kept
5 OT hours a week$9,750$663$7,17173.5%
10 OT hours a week$19,500$1,326$13,84271.0%
15 OT hours a week$29,250$1,989$20,03868.5%

Minnesota takes about 6.8% of that money on top of the 15% federal marginal rate and 7.65% FICA.

How Minnesota ranks on overtime hours

Across all 50 states and DC, Minnesota ranks 48th for what ten overtime hours a week leaves in 2026. That is $418 less than the median state ($14,260), and $497 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, $1,326 more than Minnesota keeps.

Minnesota 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 Minnesota against the states it borders:

StateState income taxYou keepvs Minnesota
Minnesota$1,326$13,842—
Iowa$741$14,427$585 more
North Dakota$135$15,033$1,191 more
South DakotaNone$15,168$1,326 more
Wisconsin$908$14,260$418 more

How overtime is taxed in Minnesota

Short answer: no: Minnesota 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 in the same federal and Minnesota brackets as the rest of your wages. 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 through the same federal brackets plus Minnesota's graduated income tax (5.35% to 9.85%).
  • 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 Minnesota take-home pay after all taxes.

Frequently Asked Questions

On your paycheck, overtime in Minnesota is ordinary wages: there is no special overtime tax rate. It's withheld on through Minnesota's graduated income tax (5.35% to 9.85%) along with the rest of your wages, and because overtime raises the pay period's total, a larger percentage of each overtime dollar may be withheld. The federal overtime deduction you claim at filing doesn't change Minnesota'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 Minnesota 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 Minnesota: five overtime hours a week is worth $7,171 a year after tax, ten overtime hours a week is worth $13,842 a year after tax, fifteen overtime hours a week is worth $20,038 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. Minnesota adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

Minnesota 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 Minnesota 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, Minnesota income tax and FICA. In Minnesota that leaves about 71.0% of each overtime dollar: $13,842 of the $19,500 that ten overtime hours a week adds over a year.

Against the 4 states Minnesota borders, the same ten overtime hours a week is worth $13,842 here: South Dakota keeps $1,326 more ($15,168), North Dakota keeps $1,191 more ($15,033), Iowa keeps $585 more ($14,427) and Wisconsin keeps $418 more ($14,260). Iowa, North Dakota, South Dakota and Wisconsin are the only borders worth crossing for the tax alone.

Minnesota's starting rate of 5.35% is higher than most progressive states (which typically start at 1%-3%). This means even someone earning $30,000 pays a higher effective rate in Minnesota than they would in many other states. A $100,000 earner pays an effective rate around 6%-7% (approximately $6,000-$7,000 annually), while the same earner in a flat-tax state like Pennsylvania would pay $3,070 (3.07% flat, though PA may have local EIT). The high starting rate means most earners pay relatively high taxes compared to other states.

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