Tennessee Overtime Calculator

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. Tennessee has no wage income tax to begin with. 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 Tennessee: five overtime hours a week is worth $7,834 a year after tax, ten overtime hours a week is worth $15,168 a year after tax, fifteen overtime hours a week is worth $22,027 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. Tennessee adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

Tennessee 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 Tennessee 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 and FICA. In Tennessee that leaves about 77.8% of each overtime dollar: $15,168 of the $19,500 that ten overtime hours a week adds over a year.

Against the 8 states Tennessee borders, the same ten overtime hours a week is worth $15,168 here: Kentucky leaves $683 less ($14,486), Arkansas leaves $761 less ($14,408), North Carolina leaves $778 less ($14,390), Mississippi leaves $780 less ($14,388), Missouri leaves $917 less ($14,252), Alabama leaves $975 less ($14,193), Georgia leaves $1,012 less ($14,156) and Virginia leaves $1,121 less ($14,047). Tennessee beats every state it borders on this, so the commute only pays in the other direction. Tennessee is not alone: Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas and Wyoming leave exactly the same $15,168.

It depends on your income level and spending patterns. High earners ($150,000+) with low taxable spending will likely save $10,000-$20,000+ annually. However, if you earn $60,000 and spend most of your income on taxable goods (groceries, services), Tennessee's 7%+ sales tax could cost you $2,100-$3,000+ annually: potentially more than you'd pay in California's low-income brackets. Calculate both scenarios before relocating.

Unfortunately, Tennessee taxes groceries at the full 7% state rate plus local taxes (up to 9.75% total). Unlike states with grocery exemptions, there's no way around this. However, you can minimize your sales tax burden by purchasing items that are exempt (like prescription medications) and by shopping in counties with lower local rates. Budget accordingly: a $200 weekly grocery bill includes $14-$19 in sales tax.