Estimate your federal OBBBA qualified overtime deduction if you work in West Virginia, then see how much West Virginia state income tax (4.82% top rate for 2026) may still be due on the same overtime. Free, instant, nothing you type leaves your device.
What West Virginia workers should know
West Virginia uses graduated income-tax brackets for 2026, topping out at 4.82%. That top rate applies only to the last dollars of higher incomes - your own marginal rate is likely lower, which is why this calculator lets you edit it. The federal §225 deduction reduces federal taxable income (Schedule 1-A), not federal AGI, so a state starting from federal AGI generally needs a separate subtraction before the break shows up on the state return.
West Virginia's graduated brackets top out at 4.82%; the rate that reaches your overtime depends on your total taxable income.
West Virginia generally follows the federal FLSA baseline: 1.5x the regular rate for hours over 40 in a workweek. Only that FLSA-required premium is qualified overtime under §225. Overtime paid under a state law, a union contract, or a company policy that goes beyond the FLSA minimum does not count toward the federal deduction.
The federal deduction is claimed on Schedule 1-A and reduces federal taxable income, not federal adjusted gross income. That distinction is the entire reason the state question exists: a state that starts from federal AGI does not see the deduction unless it enacted a specific subtraction or updated its conformity date. We have not verified any state's current position against a first-party source and publish no conformity list, so this page asserts nothing about West Virginia's status. The safe default is to assume the state still taxes overtime you deducted federally, then confirm with your state's department of revenue before you file (IRS list of state tax agencies). Sources last checked 2026-11-12.
Federal and state are two separate questions. "No tax on overtime" is a federal deduction. Whether West Virginia also exempts the same pay depends on that state's own conformity rules, which we have not verified against a first-party source. This page defaults to the conservative assumption, never asserts a state's current status as fact, and asks you to verify with your state tax agency. Sources last checked 2026-11-12.
Enter your numbers
If you have your 2026 W-2, enter the box 12 code TT amount. For tax years after 2025 the IRS says you may not claim more than that reported amount. Leave blank for an uncapped estimate.
ESTIMATED FEDERAL TAX SAVED PER YEAR
$0
Qualified overtime premium (annual)$0
Statutory cap$0
Deduction after phase-out$0
W-2 Box 12 code TT ceilingNot entered
Hourly premium that qualifies$0.00
State tax picture in West Virginia
State rate used—
State tax still due on this overtime (if not conformed)$0
Potential extra state savings if West Virginia conforms$0
Combined estimated tax savings$0
Married filing separately: taxpayers filing MFS are not eligible for the no-tax-on-overtime deduction.
No W-2 amount entered — this is an uncapped estimate. For tax years after 2025, when you file, your deduction cannot exceed the qualified overtime reported in W-2 Box 12, code TT. Box 12 reports the total qualified overtime paid, not your deductible amount — the statutory cap and MAGI phase-out still apply. If your W-2 is wrong, ask your employer for a corrected W-2c. Source: IRS Fact Sheet FS-2026-13, Q10 / Q20 / Q22, verified 2026-11-13; the statute and Notice 2025-69 remain controlling.W-2 ceiling applied. Your estimate is now capped at the W-2 Box 12 code TT amount entered above, then at the statutory cap and the MAGI phase-out. Box 12 reports the total qualified overtime paid, not the deductible amount. Source: IRS Fact Sheet FS-2026-13, Q10 / Q20, verified 2026-11-13.
Estimates only, not tax advice. State rates shown are 2026 top marginal rates and your own rate may be lower. Payroll taxes (Social Security & Medicare) are not affected. Verify West Virginia conformity with your state tax agency before filing.
How the federal deduction works
The OBBBA (signed July 4, 2025) added a deduction for qualified overtime compensation for tax years 2025 through 2028. Only the premium portion required by the Fair Labor Standards Act qualifies — the "half" in time-and-a-half. At a $20 regular rate, overtime pay is $30; only the extra $10 per overtime hour is deductible.
2. Cap = $12,500 (single) or $25,000 (married filing jointly); married filing separately cannot claim it
3. Phase-out = deduction reduced by $100 for each $1,000 of modified AGI above $150,000 (single) or $300,000 (joint)
Worked example for West Virginia
Aisha lives in West Virginia, earns $24/hr and works 8 FLSA overtime hours a week for 50 weeks. Premium = 8 × $24 × 0.5 × 50 = $4,800 deductible (well under the $12,500 single cap). At a 12% federal marginal rate that is about $576 of federal tax saved. State side: if West Virginia has not conformed and taxes that $4,800 at 4.82%, roughly $231 of state income tax remains due on the same overtime. If West Virginia does conform, that $231 is saved too, for about $807 combined.
What qualifies
Overtime required by the FLSA: 1.5× the regular rate for hours over 40 in a workweek
Only the premium (half) portion
Amounts reported on your W-2 (2026 W-2s use Box 12, code "TT"), or on 1099-MISC box 14 / 1099-NEC box 1d for non-employee payers; 2025 amounts come from pay stubs or payroll records under IRS Notice 2025-69
Box 12 code TT shows the total qualified overtime paid during the year, not the amount you can deduct — the statutory cap and MAGI phase-out still apply. For tax years after 2025 you may not claim more qualified overtime than the amount reported to you; if the W-2 is wrong, request a W-2c. Source: IRS Fact Sheet FS-2026-13, Q6 / Q10 / Q20 / Q22, verified 2026-11-13. As an IRS FAQ (not published in the Internal Revenue Bulletin) it is guidance rather than binding authority; the statute and Notice 2025-69 control.
What does NOT qualify
Overtime required only by state law or a union contract beyond FLSA rules
You do not need to itemize to claim it, but you must have a valid Social Security number. This is claimed when you file your return — it does not increase your paycheck during the year.
West Virginia income tax at a glance (2026)
2026 state income tax on wages
Yes
Tax structure
Graduated brackets
Top marginal rate (2026 table)
4.82%
Rate this calculator uses
Editable - defaults to 4.82%
Overtime baseline
FLSA 40h/week baseline
State conformity to §225
Not automatic - verify before filing
Local / city income taxes
Separate from the state rate; check your city or county
Rates are 2026 top marginal rates on wage income as of January 1, 2026 (Tax Foundation), excluding local taxes. Top rates apply only to higher incomes and some states changed rates mid-year; treat every figure as an estimate and edit the rate in the calculator to match your own bracket.
FAQ for West Virginia workers
Is overtime tax-free in West Virginia?
Federally, the FLSA premium portion is deductible under §225 for 2025-2028. At the state level it depends on whether West Virginia conforms to that federal deduction (its 2026 top rate is 4.82%). The federal break is not automatic on a state return - many states still tax the same overtime.
How much West Virginia income tax could I still owe on overtime I deducted federally?
Take $4,800 of qualified premium as an example. If West Virginia has not conformed and that amount stays taxable at the 4.82% top rate, roughly $231 of state income tax would still be due. Your actual marginal rate is probably lower than the top rate, so edit the rate field for a realistic figure.
Does West Virginia follow the federal no-tax-on-overtime deduction?
Do not assume so. The deduction is taken on Schedule 1-A and reduces federal taxable income rather than federal AGI, so states starting from AGI need their own subtraction or an updated conformity law. We have not verified any state's current position against a first-party source and deliberately publish no conformity list, so this page asserts nothing about West Virginia's status. Check the current West Virginia instructions or contact its department of revenue (IRS list of state tax agencies) before filing. Sources last checked 2026-11-12.
Does West Virginia have daily overtime?
Generally no daily overtime rule beyond the federal FLSA 40-hour workweek baseline. Only the FLSA-required premium counts as qualified overtime under §225.
What counts as qualified overtime under §225?
Only the premium the FLSA requires - the extra 0.5x on hours over 40 in a workweek. At a $20 regular rate, overtime pay is $30, but only the extra $10 per overtime hour is deductible. Shift differentials, bonuses, holiday pay, and voluntary premiums beyond the FLSA minimum do not qualify. Taxpayers filing married filing separately cannot claim it at all.
How do I claim it for 2025 and 2026?
For 2025, employers were not required to report qualified overtime separately, so use pay stubs or payroll records per IRS Notice 2025-69. From 2026, look for W-2 Box 12, code "TT", or 1099-MISC box 14 / 1099-NEC box 1d for non-employee payers. The deduction is taken on Schedule 1-A and does not require itemizing, but you need a valid Social Security number. Sources last checked 2026-11-12.
Is the W-2 Box 12 code TT amount the same as my deduction?
No. Box 12 code TT reports the total qualified overtime compensation paid for the year, not the amount you may deduct. The IRS gives the example of $30,000 of qualified overtime paid in 2026 still being reported as $30,000 in box 12 even though the deduction is capped at $12,500 (or $25,000 jointly). You still apply the FLSA-premium test, the statutory cap and the MAGI phase-out. Source: IRS Fact Sheet FS-2026-13, Q10, verified 2026-11-13.
Can my deduction be larger than the amount on my 2026 W-2?
For tax years after 2025, no: the IRS says employees may not consider qualified overtime in excess of what is reported on W-2 box 12, code TT. If your W-2 understates it, ask your employer for a corrected W-2 (W-2c) rather than claiming a larger amount. That is why this calculator offers an optional W-2 Box 12 code TT field: enter it and the estimate is capped at that reported amount; leave it blank and the result is an uncapped estimate that must be checked against your W-2 before filing. Source: IRS Fact Sheet FS-2026-13, Q20 and Q22, verified 2026-11-13. FS-2026-13 is an IRS FAQ, not published in the Internal Revenue Bulletin; the statute and Notice 2025-69 remain the controlling authority.
Do I still pay Social Security and Medicare on overtime?
Yes. §225 reduces income tax only. FICA payroll taxes are unchanged, and the deduction is claimed when you file your return - it will not make your paychecks bigger during the year.