Sources & Methodology

1

Federal Legislation Proposals

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Our calculation engine models the "One Big Beautiful Bill Act" (2025/2026) and subsequent federal proposals aiming to exempt overtime pay from federal income tax.

  • • Exemption Logic: Applies to the 1.5× hourly wage multiplier for hours worked beyond the 40-hour threshold.
  • • Deduction Caps: Limits are set based on current legislative text ($12,500 for Single filers, $25,000 for Joint filers).
  • • Current Status: These figures represent legislative proposals for the 2026 tax year and are not yet final law.
2

Official IRS Guidance

For baseline comparisons (current tax brackets, standard deductions, and withholding rates), we utilize official IRS publications and online tools.

IRS Tax Withholding Estimator
3

State Department of Revenue Data

State-specific context is derived from the various Departments of Revenue and Taxation across the 50 states. Users are encouraged to verify "tax conformity" — how your state handles federal changes — through these official portals.

Links to each state's primary tax authority are provided directly on our state calculator pages.

Update & Review Policy

Data is reviewed weekly by our editorial team. Updates are pushed immediately following any vote in the U.S. House of Representatives, U.S. Senate, or the release of new IRS withholding circulars for the 2026 fiscal year.