Overtime Pay Calculator

An overtime pay calculator answers one question fast: how much extra do those hours over 40 actually pay? The math is simple but easy to get wrong. Start with your regular hourly rate, multiply by 1.5 to get the time-and-a-half overtime rate, and multiply that by your overtime hours. Add regular pay (regular hours × base rate) for total gross. For a worker at $24/hour with 40 regular hours and 12 overtime hours: regular pay is $960, the overtime rate is $36, overtime pay is $432, and total weekly gross is $1,392. This tool also handles double-time (2×) for states and contracts that require it, lets you set a custom multiplier from a union award, and — uniquely for 2026 — estimates the federal income tax you save under the new No Tax on Overtime deduction. Everything recalculates instantly as you type, with no sign-up and no data leaving your browser.

The federal Fair Labor Standards Act (FLSA) sets the floor: covered non-exempt employees must receive at least 1.5× their regular rate for every hour worked over 40 in a single workweek. A 'workweek' is a fixed, recurring 168-hour period (seven consecutive 24-hour days) that your employer defines — it does not have to align with the calendar week or your pay period. To calculate overtime: (1) total the hours you actually worked in that workweek; (2) subtract 40 to find overtime hours; (3) multiply overtime hours by 1.5× your regular rate; (4) add regular pay. There is no federal daily overtime — working 12 hours in one day does not trigger overtime federally unless your weekly total exceeds 40. Hours of paid leave (vacation, holidays, sick days) do not count as hours worked. Whichever standard pays more — federal weekly or any stricter state rule — is the one your employer must apply.

Time and a half is the most common overtime rate and the federal minimum: 150% of your regular rate of pay. If you earn $20/hour, time and a half is $30/hour; at $32/hour it is $48/hour. The quick formula is overtime rate = base rate × 1.5, then overtime pay = overtime rate × overtime hours. The '1' in time and a half is your normal rate for those hours, and the 'half' is the 0.5× premium on top — a distinction that matters enormously in 2026, because only that half-premium qualifies for the new federal overtime tax deduction. So for 10 overtime hours at a $20 base, your overtime pay is $300, but the qualifying premium is only $20 × 0.5 × 10 = $100. This calculator separates the two automatically so you can see both your paycheck and your deductible amount.

The One Big Beautiful Bill Act introduced a temporary federal deduction for 'qualified overtime compensation' for tax years 2025 through 2028, popularly called No Tax on Overtime. It is an above-the-line deduction — you can claim it without itemizing — for the FLSA half-premium portion of your overtime, meaning the amount that exceeds your regular rate of pay. The deduction is capped at $12,500 for single filers and $25,000 for married couples filing jointly. Crucially, it reduces federal income tax only: Social Security (6.2%) and Medicare (1.45%) still apply to every overtime dollar, and state income taxes are unaffected. Employers report qualified overtime separately (on the W-2 and related statements) so workers can claim the deduction on their returns. This calculator estimates your annual qualifying premium, applies the cap, and multiplies the deductible amount by your selected marginal bracket to show the federal tax you save — turning an abstract policy into a real number on your paycheck.

To claim the 2026 overtime deduction you must receive overtime that is required under FLSA Section 7 — the 1.5× rate for hours over 40 in a workweek — and have a valid Social Security number; married filers must file jointly. The benefit phases out for higher earners: it begins shrinking once modified adjusted gross income (MAGI) exceeds $150,000 for single filers or $300,000 for joint filers, dropping by $100 of deduction for every $1,000 of income above the threshold. That means a single filer at $200,000 MAGI loses $5,000 of the maximum, and the deduction fully disappears well before $275,000. Exempt employees (executives, administrators, professionals, most highly compensated staff) who do not receive FLSA-mandated overtime generally cannot claim it, because their extra hours are not 'qualified overtime compensation.' Contractual double-time beyond the FLSA requirement does not qualify either — only the federally required premium counts.

Double-time pays 200% of your regular rate, and contrary to popular belief federal law never requires it — the FLSA tops out at time and a half. Double-time comes from two places: state law and contracts. California is the headline case: it requires 1.5× after 8 hours in a workday and 2× after 12 hours in a workday, plus 1.5× for the first 8 hours on the seventh consecutive day of work and 2× beyond 8 hours that day. Many union collective bargaining agreements specify double-time for holidays, Sundays, or extended shifts, and Australian modern awards frequently use 2× after the first few overtime hours. Enter your double-time hours separately in this calculator to layer them on top of regular and time-and-a-half pay. Remember for taxes: only the FLSA-required half-premium is deductible in 2026, so the portion of double-time above 1.5× is fully taxable income.

Whether you get overtime at all depends on exempt versus non-exempt status. Non-exempt employees are entitled to FLSA overtime; exempt employees are not. To be exempt, an employee must clear two hurdles: the salary-level test (at least $684 per week, equal to $35,568 per year, paid on a salary basis) and the duties test (genuinely performing exempt executive, administrative, professional, computer, or outside-sales work). Both must be satisfied — a manager paid $700/week with no real managerial authority is still non-exempt, and an employee paid $600/week is non-exempt regardless of duties. A 2024 federal rule that would have raised the threshold to $844 and then $1,128 per week was struck down in court, so the $684 level remains in effect for 2026. If you are non-exempt, every hour over 40 must be paid at time and a half, even if you are salaried — divide your weekly salary by hours worked to find the regular rate.

The single most misunderstood part of overtime is the 'regular rate.' It is not simply your base hourly wage — under the FLSA it is total straight-time compensation divided by total hours worked, and it must include nondiscretionary bonuses, production or attendance incentives, commissions, and shift differentials. Example: a worker earns $20/hour and a guaranteed $200 weekly production bonus, working 50 hours. The regular rate is ($20 × 50 + $200) ÷ 50 = $24/hour, so the overtime premium for the 10 overtime hours is based on $24, not $20 — overtime pay becomes $24 × 1.5 × 10 = $360 instead of $300. Excluded from the regular rate are truly discretionary bonuses, gifts, paid leave, expense reimbursements, and premium pay already paid at 1.5×. Getting the regular rate wrong is one of the most common and costly wage-and-hour errors, and it is exactly what back-pay claims hinge on.

Federal law sets a floor, but states can be more generous, and employers must follow whichever rule pays the employee more. California has the strictest daily-overtime regime: 1.5× after 8 hours per day, 2× after 12 hours per day, plus seventh-consecutive-day premiums. Alaska requires 1.5× after 8 hours per day or 40 per week. Nevada mandates daily overtime after 8 hours for employees earning less than 1.5× the state minimum wage. Colorado requires overtime after 12 hours in a day (or 12 consecutive hours) in addition to the 40-hour week. Most other states simply mirror the federal 40-hour weekly standard. Because this calculator uses the federal weekly model by default, workers in daily-overtime states should compute each day's premium separately or consult their state labor department; the 1.5× and 2× multipliers here still let you model those daily rates manually.

Salaried does not mean overtime-exempt. A non-exempt salaried employee — one who earns under $684/week or whose duties fail the exemption test — is still owed overtime for hours over 40. The method depends on the agreement. The standard approach: divide the weekly salary by the number of hours it is intended to cover (often 40) to get the regular rate, then pay 1.5× that rate for overtime hours. A $760 weekly salary for a 40-hour week yields an $19 regular rate and a $28.50 overtime rate. The 'fluctuating workweek' method is an alternative where a salary covers all hours worked and overtime is paid at 0.5× the regular rate (since straight-time is already in the salary), but it has strict legal requirements. When in doubt, enter your effective hourly rate into this calculator and treat hours over 40 as overtime to see your minimum entitlement.

Gross overtime and take-home overtime are very different numbers. From every overtime dollar, payroll withholds 6.2% Social Security (up to the annual wage base), 1.45% Medicare, federal income tax, and usually state income tax. Because payroll systems annualize each paycheck, a big overtime week can be over-withheld temporarily — but that money comes back at filing if too much was taken. The 2026 No Tax on Overtime deduction changes the federal income-tax layer: the FLSA premium portion of your overtime, up to $12,500 (single) or $25,000 (joint), is deducted from taxable income, so you owe no federal income tax on it. FICA still applies, and so do state taxes in most states. This calculator estimates the federal tax saving by multiplying your capped, deductible premium by your marginal bracket — giving a realistic picture of how much of your overtime you actually keep in 2026 versus prior years.

Overtime errors are widespread and expensive. The biggest mistakes: (1) averaging hours across two workweeks in a biweekly period to dodge overtime — illegal, each week stands alone; (2) leaving nondiscretionary bonuses out of the regular rate, understating the overtime premium; (3) misclassifying non-exempt employees as exempt based on a job title or salary alone; (4) offering private-sector 'comp time' instead of cash overtime, which the FLSA prohibits for private employers; (5) not counting all hours worked, such as pre-shift setup, post-shift cleanup, or required training; and (6) assuming overtime is taxed at a punitive special rate (it is not — and in 2026 the premium may be partly deductible). Workers should keep their own contemporaneous record of hours, because in a wage dispute the employee's records often prevail when the employer's are incomplete. If you suspect unpaid overtime, the U.S. Department of Labor's Wage and Hour Division recovers back wages and the claim is generally protected from retaliation.