New York Overtime Tax Deduction Calculator
Hourly workers in New York.
The short answer: Pre-loaded with a typical New York year, this calculator shows a $3,375 deduction worth $405 at a 12% marginal rate — $16 per paycheck if you're paid biweekly.
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$3,375
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
How New York Overtime Stacks Up
New York uses the FLSA 40-hour rule with a hospitality quirk — and high wages make the deduction bigger.
- • NY overtime follows hours beyond 40/week at 1.5× the regular rate
- • Hospitality-industry (restaurant/hotel) spread-of-hours rule adds an extra hour's pay past 10-hour days — that's not OT premium
- • NY minimum wage (2025) is about $16.50 in NYC/Long Island and somewhat downstate/upstate-tiered — high bases mean big premium halves
Worked Example
A single NYC building-services worker at $25/hour with 270 OT hours — the exact numbers are editable.
- • Premium portion: $25 ÷ 2 = $12.50/hour on OT hours
- • Deduction: $3,375 (watch the cap and MAGI phase-out as you raise the inputs)
- • Federal income tax savings: $405 at the 12% marginal rate
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Frequently Asked Questions
Does New York's spread-of-hours pay count for the OBBBA deduction?
No — spread-of-hours is an extra hour at the regular rate, not overtime premium. Only 1.5× premium dollars past 40 hours/week deduct.
NY state income tax — does the deduction apply there?
The OBBBA OT deduction reduces federal income tax; New York taxes overtime as ordinary income.
Do I need to itemize to claim it?
No. You claim the qualified overtime premium deduction on your return regardless of whether you take the standard deduction.