Texas context:
Texas is commonly described as not imposing a state personal income tax on individuals. This page focuses on the federal estimate and provides official sources for Texas tax administration and IRS tools.
- Overtime âpremiumâ is modeled as 0.5Ă 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, itâs estimated from your weekly pay and overtime scenario.
How the Federal Estimate Could Matter in Texas
Overtime pay can be a meaningful share of annual wages across Texas industries, from energy and logistics to manufacturing and services. This calculator is designed to estimate potential federal savings from overtime treatment under a 2025 proposal. Use it for planning, not as a filing result: final eligibility, phase-outs, caps, and reporting depend on the final law and your complete household income picture.
If you decide to act on an estimate, the typical next step is withholding planning. Confirm current IRS guidance and then consider updating your W-4 if appropriate. The âOfficial Tax Optionsâ page links to IRS tools to validate your situation.
What to double-check in Texas
Texas is often described as not imposing a broad-based tax on wage income. Your result here is a federal-only estimate, so itâs worth double-checking how your pay is taxed and withheld in practice.
- Check the latest Texas guidance on the official tax agency site.
- Re-check your federal withholding with the IRS Form Wâ4 guidance if your overtime pattern changes.
More context: Guide: States with no broad wage income tax.
Texas FAQ
Does this estimate include Texas state income tax rules?
Where can I verify official information for Texas?
Will Texas automatically follow federal changes?
Does Texas generally tax wage income at the state level?
Before you rely on this estimate, check whether Texas conforms to federal deductions and how your payroll defines overtime earnings. If needed, validate withholding using IRS resources and review guidance from the Texas tax agency.
State-specific scenario for Texas
Scenario: in Texas, the payroll impact you see will mostly come from federal rules and how your employer withholds. Small Wâ4 changes can have a bigger effect on takeâhome than you expect when overtime fluctuates. For official guidance, compare your inputs against the IRS Withholding Estimator and your official Texas tax agency.
How to use this estimate in Texas
Three common use cases to help you decide what to check next (federal estimate only; state rules can differ).
Use case 1: paycheck withholding sanityâcheck
If your overtime changes often, use this result as a starting point and then sanityâcheck your paycheck withholding with the IRS Withholding Estimator. To see what inputs drive the number, review Methodology.
Use case 2: moved, partâyear, or multiâstate work
If you work in another state, moved recently, or have a second job, state filing rules can still matter even if wage income is often described as untaxed locally. Start with the official Texas guidance, then use our state checklist. See how we use sources.
Use case 3: planning & documentation
For planning, keep the pay periods you modeled and your employerâs overtime definition. Read limitations and the disclaimer; if anything feels unclear, use Contact to suggest an official source.
Mini how-to by work situation in Texas
A federal-only estimate can still help planning. In Texas, wages are generally not subject to a broad state income tax, so your planning focus is often federal withholdingâstill verify any state or local rules that might apply on the official state page. Use official tools like the IRS Withholding Estimator, review Form Wâ4, and check official Texas 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 Wâ4 still matches your current pay mix. Save two recent pay stubs so you can spot whether withholding moved in the direction you expected. Because Texas generally doesnât tax wages broadly, the main moving parts are federal withholdingâstill confirm any state/local requirements. Official links: IRS estimator, Form Wâ4, Texas tax guidance.
Salaried with overtime
For salaried roles with periodic overtime, the biggest lever is usually withholding accuracy rather than the label on your salary. Use the IRS estimator, then decide whether a Wâ4 adjustment makes sense and confirm with payroll how supplemental/overtime pay is handled. In Texas, thereâs generally no broad state wage income tax, so focus on accurate federal withholding and still verify any state/local rules. Official links: IRS estimator, Form Wâ4, Texas 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 jobâs withholding settings arenât pulling in the opposite direction. Because Texas generally doesnât tax wages broadly, the main moving parts are federal withholdingâstill confirm any state/local requirements. Official links: IRS estimator, Form Wâ4, Texas tax guidance.
Official state tax pointers
Use official pages to confirm residency rules, part-year situations, and paycheck withholding.
Use the estimate safely
Treat this as a federal estimate, then verify what actually changes for your paycheck and filing situation.