Estimates only; not tax, legal, or financial advice. Figures follow published IRS guidance and 2026 state rate tables and may be out of date. Verify with a qualified professional before filing.
Sources & last checked: 2026-11-12
State income tax rates. Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 — table as of January 1, 2026; compilation current through February 11, 2026. Top marginal rates on wage income; local income taxes excluded. The source flags mid-year changes (e.g. South Carolina reverting to 6.2% on July 1, 2026). Verified 2026-11-12.
Federal rules. IRS Notice 2025-69 and IRS Fact Sheet FS-2026-13 (August 2026; supersedes FS-2026-01, older FAQ) — the OBBBA deductions under IRC §§224/225 were added to the §63(b) list of deductions used to determine taxable income, not adjusted gross income; available for tax years beginning after December 31, 2024 and ending before January 1, 2029. Verified 2026-11-12 (FS-2026-13 re-read 2026-11-13).
2026 W-2 reporting (overtime). W-2 Box 12, code TT reports the total qualified overtime paid, not the deductible amount; 1099-MISC box 14 and 1099-NEC box 1d are the non-employee equivalents. For tax years after 2025 the IRS says employees may not claim qualified overtime in excess of the amount reported to them, so an estimate based only on hours and pay rates can overstate the deduction. Source: IRS Fact Sheet FS-2026-13, Q6 / Q10 / Q20 / Q22, verified 2026-11-13. It is an IRS FAQ, not published in the Internal Revenue Bulletin; the statute and Notice 2025-69 remain controlling.
State conformity, state overtime statutes and local taxes. Not asserted, not individually re-verified on 2026-11-12. Whether a state follows the federal deduction depends on that state's own law, which can change during the year. Verify with your state tax agency (IRS list of state government websites) before filing. Statutes cited on individual state pages were not re-checked; verify with your state labor agency.