Money Playbook · Updated 2026-10-02
Working Overtime in Colorado: the money playbook
On $75k in Colorado, if you work 5 hours of overtime a week your take-home pay rises by about $9,929 a year. 5-year simulator, scorecard, salary table and checklist.
Scenario simulator
40 hours/week
$58,599
45 hours/week at 1.5×
$68,528
Change per year
+$9,929
If the yearly difference is invested at 5%, after 5 years: $54,866
Includes the federal 'no tax on overtime' deduction for the half-time premium (up to $12,500, 2025–2028, under $150k income). States mostly still tax it. Assumes 50 working weeks.
Decision scorecard
Leaning yes — close the gaps first
Rate each factor honestly. The score is yours alone and isn't saved.
By salary level
| Salary | 40 hours/week | 45 hours/week at 1.5× | Difference |
|---|---|---|---|
| $40,000 | $33,116 | $38,892 | $5,776 |
| $60,000 | $48,336 | $56,627 | $8,291 |
| $75,000 | $58,599 | $68,528 | $9,929 |
| $100,000 | $75,124 | $88,444 | $13,321 |
| $150,000 | $107,541 | $124,934 | $17,393 |
| $200,000 | $141,072 | $164,196 | $23,123 |
Printable checklist
Questions
- Is overtime taxed more?
- No. It just adds to your income at your top rate. Through 2028, the federal deduction for the overtime premium cuts the tax further.
- What's the no tax on overtime rule?
- A federal deduction of up to $12,500 for the half-time premium portion, phasing out above $150,000 of income.
Method and sources
Figures come from the same engine as our paycheck calculators: 2026 federal brackets and standard deduction, 2026 FICA, and 2025–2026 resident state schedules. City and county taxes, credits other than the Child Tax Credit, and nonresident rules are not modeled. Educational estimate, not tax advice.