Could Maryland treat overtime differently from the federal estimate?

Yes. State conformity and definitions can vary, and the state may not mirror federal treatment. Confirm details with the Maryland tax agency before relying on this estimate.

Maryland Overtime Tax Calculator 2025 | Federal OBBBA Savings Estimate

Estimate your federal overtime premium deduction (and possible tax impact) under the 2025 proposal, with Maryland-specific context and official sources.

Maryland context:

This calculator estimates a potential federal overtime-related savings scenario under the 2025 proposal. State and local tax outcomes depend on Maryland rules and your full household picture, so use the official sources below to validate what applies to you.

Model assumptions used in this calculator

Overtime “premium” is modeled as 0.5× your hourly rate per overtime hour (the time-and-a-half premium portion).
Annual cap: 2,500 (single) / $25,000 (married filing jointly).
Phase-out starts at MAGI 50,000 (single) / $300,000 (MFJ), reducing the deductible amount by 00 per ,000 over the threshold.
If MAGI is blank, it’s estimated from your weekly pay and overtime scenario.

How to Use This Estimate for Planning

Overtime can materially change take-home pay in Maryland, especially for government contractors, healthcare systems, and port operations. This tool focuses on the federal side of the proposal: it models a capped overtime “premium” amount and then applies an income phase-out based on filing status and estimated household income (MAGI). The output is an estimate meant to help you compare scenarios (for example: “What if I work 6 more OT hours per week?”), not a guarantee of your final tax filing result.

If you leave MAGI blank, the calculator estimates it from the entered weekly pay and overtime scenario. If you know your approximate household income, entering MAGI can reduce surprises because phase-out behavior is driven by that number. Either way, remember that real returns can differ based on deductions, credits, and how a final law is written and implemented.

What to confirm (and where)

Comptroller of Maryland: state income tax and withholding rules (if applicable), definitions, and current guidance.
IRS tools: whether a W-4 update makes sense after you model a scenario here.
Your pay stub: how overtime is computed and reported for your specific job (rules can vary by employer and pay type).

A practical workflow is: (1) model a few overtime scenarios here, (2) check official guidance, and (3) only then adjust withholding if you’re confident the change is appropriate. If you want to share your scenario with a spouse or coworker, use the Share/Copy buttons to include the exact inputs in the link.

What to double-check in Maryland

This estimate focuses on the proposed federal overtime deduction. To avoid surprises in Maryland, cross-check state rules and update your withholding assumptions when your overtime changes.

Use Maryland official guidance from the state tax agency site.
Re-check your federal withholding with the IRS Tax Withholding Estimator if your overtime pattern changes.

More context: Guide: State conformity & withholding.

Maryland FAQ

Quick answers to common questions about the federal overtime deduction estimate for Maryland.

Does this estimate include Maryland state income tax rules?

No. This tool estimates a federal deduction related to overtime premium pay. State rules can differ. For Maryland-specific guidance, review the Maryland tax agency website.

Where can I verify official information for Maryland?

Use IRS resources for federal withholding and forms, and the Maryland tax agency for state filing guidance and updates.

Will Maryland automatically follow federal changes?

Not always. Some states conform to federal rules, while others decouple or adopt changes differently. Check official updates from the Maryland tax agency.

Should I adjust withholding if I use this estimate in Maryland?

Possibly. If your overtime or income changes, re-check federal withholding using IRS tools and review Maryland guidance so your paycheck withholding and filing assumptions stay consistent.

Before you rely on this estimate, check whether Maryland conforms to federal deductions and how your payroll defines overtime earnings. If needed, validate withholding using IRS resources and review guidance from the Maryland tax agency.

State-specific scenario for Maryland

Scenario: you moved into or out of the state during the year and may be a part‑year resident. Withholding often reacts to spikes, so your take‑home may not track the annual estimate smoothly. For official guidance, compare your inputs against the IRS Withholding Estimator and your official Maryland tax agency.

How to use this estimate in Maryland

Three common use cases to help you decide what to check next (federal estimate only; state rules can differ).

Use case 1: paycheck withholding sanity‑check

Use this estimate to set expectations, then confirm your withholding still matches your situation using the IRS Withholding Estimator. Our calculation notes explain what is (and is not) included.

Use case 2: moved, part‑year, or multi‑state work

If you moved, work across state lines, or file part‑year, confirm residency and withholding guidance before relying on a federal-only estimate. Start with the official Maryland guidance, then use our state checklist. See how we use sources.

Use case 3: planning & documentation

If you’re sharing this estimate with an employer or preparer, note how your overtime is calculated on your paystub. Review assumptions & limits and the disclaimer. You can also browse all states for comparisons.

Mini how-to by work situation in Maryland

A federal-only estimate can still help planning. In Maryland, state withholding and filing rules can differ from federal rules, especially around residency or part‑year work. Confirm details on the official state guidance page. Use official tools like the IRS Withholding Estimator, review Form W‑4, and check official Maryland tax guidance.

Hourly / shift workers

When your schedule changes (extra shifts, weekend coverage), re-check your federal withholding using the IRS estimator and confirm your W‑4 still matches your current pay mix. Save two recent pay stubs so you can spot whether withholding moved in the direction you expected. State withholding rules in Maryland can differ from federal expectations—double‑check residency/part‑year guidance on the official site. Official links: IRS estimator, Form W‑4, Maryland tax guidance.

Salaried with overtime

If you’re salaried but occasionally earn overtime or bonuses, treat this estimate as a planning signal and validate your withholding using the IRS tool. If the estimate suggests a meaningful change, consider updating your W‑4 and ask payroll how overtime is coded on your pay statement. State withholding rules in Maryland can differ from federal expectations—double‑check residency/part‑year guidance on the official site. Official links: IRS estimator, Form W‑4, Maryland tax guidance.

Multiple jobs or job change

With multiple employers, each payroll system withholds in isolation, so the combined outcome can surprise you. Use the IRS estimator using your total income and then validate that each job’s withholding settings aren’t pulling in the opposite direction. State withholding rules in Maryland can differ from federal expectations—double‑check residency/part‑year guidance on the official site. Official links: IRS estimator, Form W‑4, Maryland tax guidance.

Official state tax pointers

Use official pages to confirm residency rules, part-year situations, and paycheck withholding.

Maryland Overtime Tax Calculator (2025)