<prompt> Human: I work as an RN making about 37 an hour on a 36 hour work week. Anything over 40 hours is time an a half, with shift differentials for nights and weekends. I frequently hear my colleagues talk about how it isnt worth it to work too much overtime per pay period because you get taxed more. I was wondering if there is any truth in this, and if someone can explain it to me. I live in Philadelphia, PA btw, where the city income tax is fairly high.  <response>: Overtime pay is taxed at the exact same rate as all other income. However your employers accounting software may withhold tax at a higher rate because it assumes you will do the same every pay period. It all evens out at tax time. 