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No Tax on Overtime in Ohio

3.5%

The deduction is federal. Ohio still charges its own tax on those same hours.

On $6,304 of overtime premium

You save $1,387, but Ohio takes back $221

Worked on Ohio's own average wage ($68,296, about $33/hour per BLS) with 8 overtime hours a week for 48 weeks. The OBBBA deduction cuts your federal tax, but not your state base, so Ohio charges anyway. FICA is never touched: $482 of Social Security and Medicare on those hours.

Ohio keeps 16.0% of what the federal deduction gives back.

No Tax on Overtime Calculator

What the new federal overtime deduction actually saves you — and what it does not.

2025–2028
$

Federal tax saved: $1,183. FICA still owed on that overtime: $1,234.

Overtime pay for the year (gross)
$16,128
Qualifying premium (the half of time-and-a-half)
$5,376
Deduction applied (Schedule 1-A)
$5,376
Federal tax without the deduction
$7,531
Federal tax with the deduction
$6,348
Take-home for the year
$60,291

Estimates only. Not tax or legal advice. Consult a professional. Models FLSA time-and-a-half: the deductible premium is half your regular rate per overtime hour, capped and phased out per Schedule 1-A.

How the split moves with your overtime

Single filer on $68,296 of straight-time pay in Ohio, tax year 2026. The last row is the deduction cap.

Overtime premiumFederal savingOhio taxFICANet benefit
$2,000$440−$70−$153$370
$4,000$880−$140−$306$740
$6,000$1,320−$210−$459$1,110
$8,000$1,760−$280−$612$1,480
$12,500$2,750−$438−$956$2,313

Models the ordinary state income tax on those hours. Informational estimate, not tax advice.

Overtime and OBBBA in Ohio

Does Ohio tax my overtime in 2026?
Yes. The OBBBA deduction is federal: it cuts your federal tax, not your state base. Ohio still applies its 3.5% income tax to those hours, so you get $1,387 back federally while Ohio takes $221 of the very same hours.
So is overtime actually tax-free?
Not quite, and the name oversells it. The deduction covers only the PREMIUM half of time-and-a-half, caps at $12,500 for a single filer, phases out above $150,000 of income, and never touches FICA: in this example you pay $482 in Social Security and Medicare on those hours regardless.
What do I actually save in Ohio?
On $68,296 of straight-time pay plus $6,304 of overtime premium: $1,387 off your federal bill, less $221 that Ohio takes. Real net effect of the deduction: $1,166.
Where does this show up on my W-2?
Your employer reports qualified overtime in W-2 box 12 under code TT. That figure is what carries to Schedule 1-A; if the box is empty, ask your employer to correct it before you file.

Compare with nearby states

Indiana 3.0%Kentucky 4.0%Pennsylvania 3.1%Michigan 4.3%West Virginia 6.5%All states →

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