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Nebraska Overtime Calculator

Overtime in Nebraska 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 Nebraska's graduated income tax (2.46% to 4.55%) in 2026, though the federal premium is now deductible when you file.

Is overtime taxed in Nebraska?

Yes, but not at a special rate: overtime in Nebraska is withheld on in the same federal brackets as regular wages plus Nebraska's graduated income tax (2.46% to 4.55%). 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 Nebraska borders, the same ten overtime hours a week is worth $14,281 here: South Dakota keeps $887 more ($15,168), Wyoming keeps $887 more ($15,168), Iowa keeps $146 more ($14,427), Missouri leaves $29 less ($14,252), Colorado leaves $57 less ($14,224) and Kansas leaves $201 less ($14,080). Iowa, South Dakota and Wyoming are the only borders worth crossing for the tax alone.

See what your overtime hours actually add

Estimated take-home

$56,581 /yr

$2,176 per paycheck · $4,715/moFor $25/hr, 40 + 10 overtime hrs a week · Nebraska · 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 income tax (Nebraska)−$2,549.71
  • Total take-home$56,580.54

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

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

Your details

More options Deductions & details · optional
Overtime adds $14,281/yr: you keep 73.24% 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 Nebraska

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

Overtime workedGrossNebraska taxYou keepShare kept
5 OT hours a week$9,750$444$7,39175.8%
10 OT hours a week$19,500$887$14,28173.2%
15 OT hours a week$29,250$1,331$20,69770.8%

Nebraska takes about 4.5% of that money on top of the 15% federal marginal rate and 7.65% FICA.

How Nebraska ranks on overtime hours

Across all 50 states and DC, Nebraska ranks 25th for what ten overtime hours a week leaves in 2026. That is $21 more than the median state ($14,260), and $936 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, $887 more than Nebraska keeps.

Nebraska 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 Nebraska against the states it borders:

StateState income taxYou keepvs Nebraska
Nebraska$887$14,281—
Colorado$858$14,224$57 less
Iowa$741$14,427$146 more
Kansas$1,088$14,080$201 less
Missouri$917$14,252$29 less
South DakotaNone$15,168$887 more
WyomingNone$15,168$887 more

How overtime is taxed in Nebraska

Short answer: no: Nebraska 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 Nebraska 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 Nebraska's graduated income tax (2.46% to 4.55%).
  • 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 Nebraska take-home pay after all taxes.

Frequently Asked Questions

On your paycheck, overtime in Nebraska is ordinary wages: there is no special overtime tax rate. It's withheld on through Nebraska's graduated income tax (2.46% to 4.55%) 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 Nebraska'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 Nebraska 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 Nebraska: five overtime hours a week is worth $7,391 a year after tax, ten overtime hours a week is worth $14,281 a year after tax, fifteen overtime hours a week is worth $20,697 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. Nebraska adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

Nebraska 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 Nebraska 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, Nebraska income tax and FICA. In Nebraska that leaves about 73.2% of each overtime dollar: $14,281 of the $19,500 that ten overtime hours a week adds over a year.

Against the 6 states Nebraska borders, the same ten overtime hours a week is worth $14,281 here: South Dakota keeps $887 more ($15,168), Wyoming keeps $887 more ($15,168), Iowa keeps $146 more ($14,427), Missouri leaves $29 less ($14,252), Colorado leaves $57 less ($14,224) and Kansas leaves $201 less ($14,080). Iowa, South Dakota and Wyoming are the only borders worth crossing for the tax alone.

Nebraska's progressive brackets are compressed at the bottom, meaning most middle and high earners quickly reach the top 6.84% rate. A $75,000 earner pays an effective rate around 5.5%-6% (approximately $4,125-$4,500 annually), while the same earner in a flat-tax state like Pennsylvania would pay $2,300 (3.07% flat, though PA may have local EIT). The 6.84% rate is significantly higher than neighboring flat-tax states, making Nebraska less tax-friendly than many people expect for a Midwestern state.

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