How should Washington residents interpret the result?

Washington is commonly described as not applying a broad state wage income tax, so the result is mainly about the federal deduction. Still, confirm any state-level details on the Washington tax agency website.

Washington Overtime Tax Calculator 2025 | Federal OBBBA Savings Estimate

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

Washington context:

This calculator estimates a potential federal overtime-related savings scenario under the 2025 proposal. State and local tax outcomes depend on Washington 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 Washington, especially for ports/logistics, manufacturing, and tech 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)

Washington State Department of Revenue: 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 Washington

In Washington, people often focus on federal withholding because state wage-tax treatment can be different from other states. Treat this output as a federal estimate and verify the pieces that affect your paycheck.

Review Washington rules and notices on the state tax agency site.
Re-check your federal withholding with the IRS Form W‑4 guidance if your overtime pattern changes.

More context: Guide: States with no broad wage income tax.

Washington FAQ

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

Does this estimate include Washington state income tax rules?

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

Where can I verify official information for Washington?

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

Will Washington automatically follow federal changes?

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

Does Washington generally tax wage income at the state level?

Many summaries describe Washington as not levying a broad-based tax on wage income, but details can vary and change. Verify what applies to you on the Washington tax agency site and adjust federal withholding using IRS guidance if needed.

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

State-specific scenario for Washington

Scenario: because wages are not subject to a state income tax in Washington, your changes are mainly driven by federal withholding. Small W‑4 changes can have a bigger effect on take‑home than you expect when overtime fluctuates. For official guidance, compare your inputs against the IRS Withholding Estimator and your official Washington tax agency.

How to use this estimate in Washington

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 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 Washington 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 Washington

A federal-only estimate can still help planning. In Washington, wages are generally not subject to a broad state income tax, so your planning focus is often federal withholding—still verify any state or local rules that might apply on the official state page. Use official tools like the IRS Withholding Estimator, review Form W‑4, and check official Washington 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. In Washington, there’s 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 W‑4, Washington 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. Because Washington generally doesn’t tax wages broadly, the main moving parts are federal withholding—still confirm any state/local requirements. Official links: IRS estimator, Form W‑4, Washington tax guidance.

Multiple jobs or job change

If you have more than one job (or you changed jobs mid‑year), withholding can get out of sync quickly. Run the IRS estimator with combined income, then check whether each employer’s withholding settings are consistent with the estimator’s guidance. In Washington, there’s 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 W‑4, Washington tax guidance.

Official state tax pointers

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

Washington Overtime Tax Calculator (2025)