No Tax on Overtime for Police Officers (2026)
Officers on a 7(k) work period can deduct the overtime premium their agency pays under that rule. You can deduct the overtime premium (the “half” of time-and-a-half) up to $12,500, or $25,000 if married filing jointly. For 2026, use the code TT amount on your W-2.
- Cap $12,500 · joint $25,000
- W-2 box 12 code TT
Special rule: Law enforcement on a section 7(k) work period: the IRS counts the premium paid under that method (FS-2026-13, Q17).
Overtime calculator for police officers
Private: runs in your browserEstimate of federal income tax only. Not tax advice.
Example: police officer
- Patrol officer, $38/hour, 260 overtime hours, married filing jointly, $140,000 incomePremium: 0.5 × $38 × 260 hours = $4,940.Deduct $4,940 · save about $1,087 in federal tax
Planning estimate from pay and hours. Your 2026 deduction uses the code TT amount on your W-2.
What police officers should know
- Comp time counts in the year it’s paid out (when you take the time off or cash it out), not when you earn it (FS-2026-13, Q18).
- Off-duty details paid by a third party may be handled differently. Check your W-2 code TT.
- Supervisors who are salaried and exempt don’t qualify.
- Only overtime the federal FLSA requires counts. Extra pay from state law or a contract alone doesn’t.
Police Officers: FAQ
Do police officers qualify for no tax on overtime?
Yes, if they’re FLSA overtime-eligible. Agencies using a 7(k) work period report the premium they actually paid.
Does comp time count?
Yes, but in the year it’s paid out as wages, not the year it’s earned.
Is the cap different for officers?
No. It’s $12,500, or $25,000 on a joint return.
How much overtime can police officers deduct?
Up to $12,500 of qualified overtime, or $25,000 on a joint return, for 2025 through 2028. It shrinks above $150,000 of income ($300,000 joint).
Does this lower Social Security or Medicare?
No. It only lowers federal income tax. State tax depends on your state.
Related tools and guides
- FirefightersSpecial FLSA rules apply. See what counts.
- EMTs and ParamedicsHourly overtime premium, code TT.
- Government Employees (Comp Time)Special FLSA rules apply. See what counts.
- No tax on overtime calculatorW-2 code TT or an hours estimate, cap, phase-out and tax saved.
- W-2 box 12 code TTWhat code TT means, and what to do if it is missing or wrong.
- Double time and state overtimeDouble time, daily overtime, contracts: what counts.
- No tax on overtime by jobNurses, police, firefighters, drivers and more.