Could Virginia 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 Virginia tax agency before relying on this estimate.

Virginia Overtime Tax Calculator 2025 | Federal OBBBA Savings Estimate

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

Virginia context:

This calculator estimates a potential federal overtime-related savings scenario under the 2025 proposal. State and local tax outcomes depend on Virginia 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 Virginia, especially for defense and government contracting, services, and healthcare. 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)

Virginia Department of Taxation (Virginia Tax): 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 Virginia

Use this page as a federal baseline, then verify what Virginia does with federal definitions and withholding. The state-side details are what determine your final take-home pay.

Review Virginia filing guidance via the state tax agency.
Re-check your federal withholding with the IRS Tax Withholding Estimator if your overtime pattern changes.

More context: Guide: State conformity & withholding.

Virginia FAQ

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

Does this estimate include Virginia state income tax rules?

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

Where can I verify official information for Virginia?

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

Will Virginia automatically follow federal changes?

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

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

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

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

State-specific scenario for Virginia

Scenario: you hold two W‑2 jobs and overtime comes from only one of them. That can make withholding look “off” even when the deduction estimate is reasonable. For official guidance, compare your inputs against the IRS Withholding Estimator and your official Virginia tax agency.

How to use this estimate in Virginia

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

When you expect sustained overtime, validate the paycheck impact by running the IRS Withholding Estimator. Then cross‑check assumptions in Methodology.

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 Virginia guidance, then use our state checklist. See how we use sources.

Use case 3: planning & documentation

Use this as a quick “what-if,” then document the assumptions you used (weekly pay, overtime hours, and whether MAGI was entered). Our methodology section and disclaimer explain the limits of the estimate.

Mini how-to by work situation in Virginia

A federal-only estimate can still help planning. Virginia generally has state-specific withholding and filing rules, so use the official state guidance to confirm residency/part‑year issues and how state withholding is calculated. Use official tools like the IRS Withholding Estimator, review Form W‑4, and check official Virginia tax guidance.

Hourly / shift workers

If your overtime hours fluctuate week to week, use the IRS Withholding Estimator after a typical pay period so your federal withholding stays aligned with your current pattern. Then review your Form W‑4 choices and keep recent pay stubs handy when you compare results. Virginia may apply state-specific withholding and residency rules, so confirm local guidance before making changes. Official links: IRS estimator, Form W‑4, Virginia 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 W‑4 adjustment makes sense and confirm with payroll how supplemental/overtime pay is handled. State withholding rules in Virginia can differ from federal expectations—double‑check residency/part‑year guidance on the official site. Official links: IRS estimator, Form W‑4, Virginia 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. Virginia may apply state-specific withholding and residency rules, so confirm local guidance before making changes. Official links: IRS estimator, Form W‑4, Virginia tax guidance.

Official state tax pointers

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

Virginia Overtime Tax Calculator (2025)