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Level 1
April 25, 2026
Question

Why is oregon only honoring 1/3 of overtime premiums in taxes for 2025

  • April 25, 2026
  • 1 reply
  • 134 views
Oregon department of revenue is telling me they only have to honor 1/3 of overtime pay in regards to your personal taxes for 2025. This is not in accordance of the Big Beautiful Bill. Anyone else experiencing this, basically, betrayal of the state to its residents?

1 reply

Level 15
April 25, 2026

You might be confusing the calculation of the deductible overtime pay with the amount of the deduction. For example, if you earn an hourly wage of $100 an hour and you get time and a half for overtime you would get paid $150 an hour. Your deductible portion is $50 which is 1/3 of $150. 

fanfare
Level 15
April 26, 2026

That's not no-tax-on-overtime.

By allowing only 1/3 of overtime to be deducted, the party in power is playing us for fools, and we let them get away with it.

 

@Choldcraft29 

Level 3
April 26, 2026

For Federal taxes which party voted to keep 100% of overtime taxed (and tips, too?)  It's always good to get some tax cut.