Taxpayers in the top quintile would receive the largest tax cut from no tax on overtime

Taxpayers in the top quintile would receive the largest tax cut from no tax on overtime

Average Tax Cut in 2026 by Income Quintile ($)

Income

Taxes

Payroll

Taxes

$210

$240

$470

$450

$940

$540

$10

$80

$450

$920

$1,480

Bottom 20%

Second 20%

Middle 20%

Fourth 20%

Top 20%

Source: Institute on Taxation and Economic PolicyEmbed Download image

Notes: Average tax cut for the Poorest 20% is $0 for income taxes and $10 for payroll taxes. Average tax cut for the Second 20% is $30 for income taxes and $50 for payroll taxes.