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Texas Overtime Calculator

Overtime in Texas 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 no state income tax in 2026, though the federal premium is now deductible when you file.

Is overtime taxed in Texas?

Overtime pay in Texas is withheld on like regular wages, at no special rate, and since Texas has no state income tax, it only faces federal income tax and 7.65% FICA. 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 Texas borders, the same ten overtime hours a week is worth $15,168 here: Louisiana leaves $585 less ($14,583), Arkansas leaves $761 less ($14,408), Oklahoma leaves $878 less ($14,291) and New Mexico leaves $917 less ($14,252). Texas beats every state it borders on this, so the commute only pays in the other direction.

See what your overtime hours actually add

Estimated take-home

$59,130 /yr

$2,274 per paycheck · $4,928/moFor $25/hr, 40 + 10 overtime hrs a week · Texas · single

Take-home 83%Taxes 17%

Calculation breakdown

  • Gross salary$71,500.00
  • Federal income tax−$6,900.00
  • FICA (Social Security & Medicare)−$5,469.75
  • State income tax (Texas)$0.00
  • Total take-home$59,130.25

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

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

Your details

More options Deductions & details · optional
Overtime adds $15,168/yr: you keep 77.79% 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 Texas

On top of full-time pay at $25 an hour ($52,000 a year) in Texas, here is what each extra dollar survives federal tax, no state income tax and FICA in 2026:

Overtime workedGrossTexas taxYou keepShare kept
5 OT hours a week$9,750None$7,83480.3%
10 OT hours a week$19,500None$15,16877.8%
15 OT hours a week$29,250None$22,02775.3%

Texas levies no income tax on wages, so this money is exposed only to the 15% federal marginal rate and 7.65% FICA: there is no state layer on top.

How Texas ranks on overtime hours

Across all 50 states and DC, Texas ranks 1st for what ten overtime hours a week leaves in 2026, tied with 7 other states that levy no income tax on wages. That is $908 more than the median state ($14,260), and $1,823 more than Oregon, where the same ten overtime hours a week leaves $13,345.

Texas 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 Texas against the states it borders:

StateState income taxYou keepvs Texas
TexasNone$15,168—
Arkansas$761$14,408$761 less
Louisiana$585$14,583$585 less
New Mexico$917$14,252$917 less
Oklahoma$878$14,291$878 less

How overtime is taxed in Texas

Short answer: no: overtime is not taxed at a higher rate, and Texas takes no income tax at all. At $25 an hour, ten overtime hours a week are worth $15,168 a year here, $1,823 more than the same hours would leave in Oregon. Big overtime checks can be over-withheld because withholding is calculated per paycheck; that evens out on your return. Here's the full picture. Texas is not alone: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee and Wyoming leave exactly the same $15,168.

  • 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: federal only: There is no special tax rate for overtime pay. It's added to your regular wages and withheld on in the same federal brackets, and since Texas has no income tax, only federal tax and FICA apply.
  • 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 Texas take-home pay after all taxes.

Frequently Asked Questions

As ordinary wages on your paycheck: there is no special overtime rate, and no Texas income tax to add. At $25 an hour full time, ten overtime hours a week add $19,500 gross and $15,168 after withholding, so you keep 77.8% of every overtime dollar. Big overtime weeks can be over-withheld because withholding is per paycheck; that evens out when you file.

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. Texas 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 Texas: 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. Texas adds no daily-overtime rule on top of that federal floor. The calculator uses the standard 1.5× multiplier.

Texas 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 Texas 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 Texas 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 4 states Texas borders, the same ten overtime hours a week is worth $15,168 here: Louisiana leaves $585 less ($14,583), Arkansas leaves $761 less ($14,408), Oklahoma leaves $878 less ($14,291) and New Mexico leaves $917 less ($14,252). Texas beats every state it borders on this, so the commute only pays in the other direction. Texas is not alone: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee and Wyoming leave exactly the same $15,168.

It depends on your property ownership and spending patterns. Texas relies heavily on property taxes, which can range from $4,000-$10,000+ annually for a typical home. A $100,000 earner who rents might save $5,000-$8,000 annually compared to income-tax states, but a homeowner with a $300,000 property might pay $5,000-$7,000+ in property taxes: potentially offsetting income tax savings. Factor in property ownership when evaluating Texas.

Your paycheck shows federal taxes (income tax, Social Security, Medicare) and any pre-tax deductions (401(k), health insurance, HSA). Texas doesn't tax income, so there's no state income tax line item. However, you'll still see federal tax deductions, which apply regardless of state. The lack of state income tax means your take-home pay is higher than in income-tax states, but federal taxes still apply.

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