Pennsylvania Overtime Tax Deduction Calculator
Hourly workers in Pennsylvania.
The short answer: At the scenario numbers pre-loaded below, the OBBBA deduction is $2,875, worth about $345 in federal income tax at a 12% marginal rate ($13 per biweekly paycheck). Change any input and every figure updates live.
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$2,875
✅ 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.
When Pennsylvania Hours Go Past 40
Pennsylvania mostly mirrors the FLSA — 40-hour weeks, 1.5× premium, manufacturing-heavy OT.
- • PA overtime: 1.5× after 40 hours/week under state law tracking the FLSA
- • PA's minimum salary threshold for OT exemption has historically been modest — many salaried Pennsylvania workers are non-exempt and earn OT
- • Manufacturing, logistics (Lehigh Valley warehouses), and healthcare systems drive PA OT
Worked Example
A single PA plant worker at $23/hour with 250 OT hours — the exact numbers are editable.
- • Premium portion: $23 ÷ 2 = $11.50/hour on OT hours
- • Deduction: $2,875 (watch the cap and MAGI phase-out as you raise the inputs)
- • Federal income tax savings: $345 at the 12% marginal rate
Keep Reading
Frequently Asked Questions
Do Pennsylvania salaried workers get overtime here?
If classified non-exempt and paid OT premium past 40/week, those premium dollars deduct. Exempt salaried workers have no OT premium.
PA state tax treatment of overtime?
The OBBBA deduction is federal; Pennsylvania taxes overtime as wages.
Does the overtime deduction change my withholding during the year?
You can adjust your W-4 so the savings show up in each paycheck instead of waiting for a refund — the withholding adjuster on this site walks through it.