No Tax on Overtime in Ohio: What Qualifies and What Doesn't
The federal deduction works the same dollar math everywhere. What's genuinely different in Ohio is whether your overtime pay is the kind that qualifies, and whether Ohiogives you any benefit on your state return too.
For most people this is the AGI on Form 1040, line 11.
$22.00/hr × 0.5 = $11.00 premium per OT hour × 240 hours = $2,640.00 qualified overtime.
Qualified overtime compensation (the premium portion only)
$2,640.00
Your deduction cap
$12,500.00
Your deduction
$2,640.00
Estimated federal tax saved
$580.80
FICA on your overtime (still withheld — not affected by this deduction)
$201.96
This is a deduction, not an exemption. Your employer still withheld income tax on this overtime during the year. The benefit shows up as a larger refund or smaller balance due when you file.
This is an estimate, not tax advice. Figures are based on published IRS guidance for tax years 2025–2028. Your actual deduction depends on your full return. Confirm with a tax professional or the IRS before filing. Nothing you enter here leaves your browser.
Reviewed by Saurabh Sharma and Ashay Saraswat · last verified August 31, 2026 against IRS guidance.
Does Ohio overtime qualify for the federal deduction?
Ohio's own overtime statute (Ohio Rev. Code §4111.03, part of the Minimum Fair Wage Standards Act) tracks the FLSA directly and incorporates its exemptions by reference. Effectively all overtime pay in Ohio is FLSA-required and qualifies for the federal deduction.
Source: Ohio Revised Code §4111.03 (Ohio Minimum Fair Wage Standards Act)· verified 2026-08-31.
Does Ohio follow the federal deduction on your state return?
Ohio Senate Bill 9 (signed by Gov. DeWine, March 5, 2026) advanced Ohio's IRC conformity date to bring in most OBBBA-related changes for tax year 2025, but the qualified overtime and qualified tips deductions were specifically excluded from that conformity because — like New York — they are federal below-the-AGI-line deductions, and Ohio's tax base (Ohio adjusted gross income) likewise starts from federal AGI.
None. Overtime premium pay and tips are fully taxable on an Ohio return.
Source: Ohio Senate Bill 9 (136th General Assembly, signed March 5, 2026); Ohio Department of Taxation conformity guidance· last verified 2026-08-31.
How overtime works in Ohio
- 1.5x regular rate for hours worked beyond 40 in a workweek. No daily overtime threshold.
What this is worth to a Ohio worker
Take a single filer earning the latest published national median hourly wage of $24.51/hr (a Ohio-specific median wasn't available from BLS's own site this session — this uses the national figure rather than guessing a state number), working 5 overtime hours a week for the full year (260 hours). The premium portion is 0.5 × $24.51 × 260 hours = $3,186.3 in qualified overtime.
At a $45,000 MAGI, single filer, well under the $150,000 phase-out threshold, the full $3,186.3 deduction applies (it's under the $12,500 cap too), saving an estimated $382.36 in federal tax.
On the Ohio state return: None. Overtime premium pay and tips are fully taxable on an Ohio return.
Frequently asked questions
Does overtime in Ohio qualify for the federal no tax on overtime deduction?
Yes, effectively all of it. Ohio's own overtime statute (Ohio Rev. Code §4111.03, part of the Minimum Fair Wage Standards Act) tracks the FLSA directly and incorporates its exemptions by reference. Effectively all overtime pay in Ohio is FLSA-required and qualifies for the federal deduction.
Does Ohio have its own state-level "no tax on overtime" deduction?
No. None. Overtime premium pay and tips are fully taxable on an Ohio return.