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Effective January 1, 2025, the tax rate increased to 0.8237% of the wages paid by an employer and the net earnings from self-employment for services performed within the TriMet District boundary. Employers should apply the new rate with their reporting related to wages for the first quarter of 2025.
The nine states without a state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Not taxing overtime has a compounding ``race to the bottom effect by enabling employers to extract yet more labor from sub-minimum-wage tipped employees by making it possible to make ends meet by working 12-hour days where an 8-hour day would not be enough.
All purchases (retail) are to include the Nations 5% tax.
Overtime pay is subject to the same tax rates as regular income. However, because earning more money from overtime can push you into a higher tax bracket, it may increase your overall tax liability.
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No, overtime pay is not taxed more than your standard pay, but theres a common misconception that it is. This misunderstanding often arises because when employees work overtime, their paycheck is larger, and they may notice more taxes being withheld. However, this doesnt mean that overtime is taxed at a higher rate.
Under the National Internal Revenue Law, overtime pay is classified as taxable income. Both employers and employees are responsible for paying taxes on this income.
Tax rates and brackets vary by state. That said, the impact of overtime pay on your state tax liability depends on where you live and work. For example, states like California have progressive tax rates that could lead to higher state taxes on overtime earnings.

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