Estimate the federal OBBBA qualified overtime deduction if you work in New Hampshire, and see exactly why there is no New Hampshire state income tax on your overtime pay. Free, instant, nothing you type leaves your device.
What New Hampshire workers should know
New Hampshire has no individual income tax on wages. That means there is no state income tax on your overtime pay to begin with, so there is no state conformity question to resolve and no state return adjustment to make. The federal §225 deduction is the only income-tax break at stake. You still owe Social Security and Medicare (FICA) on every dollar of overtime - the deduction never touches payroll taxes.
New Hampshire finished repealing its interest and dividends tax in 2025, so it now taxes neither wage income nor investment income at the individual level.
New Hampshire 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.
Because New Hampshire levies no tax on wages, the federal-vs-state distinction has no practical effect on your overtime here. For workers in other states, the distinction is often worth real money - see the state-by-state index.
Good news for New Hampshire workers: with no state income tax on wages, the federal deduction is the only income-tax change that affects your overtime. There is nothing to add back on a state return.
Federal and state are two separate questions. "No tax on overtime" is a federal deduction. Whether New Hampshire 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 New Hampshire
State rate used—
State tax still due on this overtime (if not conformed)$0
Potential extra state savings if New Hampshire 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 New Hampshire 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 New Hampshire
Cole lives in New Hampshire, 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: New Hampshire levies no income tax on wages, so there is $0 of state income tax on that $4,800 either way. The combined estimate stays about $576.
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.
New Hampshire income tax at a glance (2026)
2026 state income tax on wages
No
Tax structure
None - no individual income tax
Top marginal rate (2026 table)
n/a
Rate this calculator uses
0% (no wage tax)
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 New Hampshire workers
Is overtime tax-free in New Hampshire?
There is no New Hampshire individual income tax on wages, so your overtime is already free of state income tax - that has nothing to do with the new federal law. Federally, only the FLSA premium portion (the half in time-and-a-half) is deductible under §225, up to $12,500 for single filers or $25,000 jointly, for 2025 through 2028. Social Security and Medicare still apply to all of it.
Why does the calculator show $0 of state tax for New Hampshire?
Because New Hampshire does not tax wage income. The conformity switch has no effect on your numbers here, since there is no state income tax to conform or decouple. The federal deduction is the only income-tax change that affects your overtime.
Does New Hampshire 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 New Hampshire's status. Check the current New Hampshire instructions or contact its department of revenue (IRS list of state tax agencies) before filing. Sources last checked 2026-11-12.
Does New Hampshire 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.