Overtime Calculator
Enter your hourly wage and the hours you worked to see regular pay, overtime pay at 1.5× or 2× and the total for the week and the year.
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40 hours a week under federal law.
E.g. California: over 12 hours in a day.
Used for the yearly total.
- Overtime rate
- $37.50/h
- Overtime hours
- 10
- Yearly (52 weeks)
- $71,500.00
- Overtime premium per year
- $6,500.00
| Hours | Rate | Pay | |
|---|---|---|---|
| Regular | 40 | $25.00 | $1,000.00 |
| Overtime (1.5×) | 10 | $37.50 | $375.00 |
| Total | 50 | $1,375.00 |
How this was calculated
- Regular pay: 40 h × $25.00 = $1,000.00.
- Overtime rate: $25.00 × 1.5 = $37.50 an hour.
- Overtime pay: 10 h × $37.50 = $375.00.
- Total: $1,375.00 for the week. Over 52 such weeks: $71,500.00.
No tax on overtime (2025–2028): only the premium half of time and a half is deductible on your federal return, up to $12,500 a year ($25,000 married filing jointly), reduced above $150,000 of income ($300,000 joint). Here that premium is about $6,500.00 a year. Social Security, Medicare and state tax still apply.
How to calculate overtime pay
Under the federal Fair Labor Standards Act, a non-exempt employee earns at least 1.5 times the regular rate for every hour over 40 in a workweek. The calculation has three steps: regular pay (up to 40 hours × your wage), the overtime rate (your wage × 1.5) and overtime pay (hours over 40 × the overtime rate). Add the two for the week's gross pay.
Worked example
At $25 an hour and 50 hours in a week: 40 × $25 = $1,000 regular pay. The overtime rate is $25 × 1.5 = $37.50, so 10 overtime hours pay $375. The week pays $1,375, an average of $27.50 an hour. Of that overtime, $125 (10 × $12.50) is the “premium” above straight time.
Daily overtime and double time
Federal law only counts weekly hours, but some states go further. California pays time and a half after 8 hours in a day and double time after 12, and on the seventh consecutive workday. Alaska, Nevada and Colorado also have daily rules. Enter double-time hours separately to include them, or change the threshold to match your contract.
No tax on overtime (2025–2028)
The One Big Beautiful Bill Act lets workers deduct qualified overtime pay on their federal return for 2025 through 2028. Only the premium half counts: if you earn $37.50 for an overtime hour on a $25 wage, $12.50 is deductible. The deduction is capped at $12,500 a year ($25,000 for married couples filing jointly) and shrinks by $100 for every $1,000 of income above $150,000 ($300,000 joint). It lowers federal income tax only; Social Security, Medicare and state taxes still apply, and many employers still withhold as before, so the saving often shows up as a bigger refund.
To see what your overtime week means after taxes, put the weekly total in the paycheck calculator with weekly pay. For just the rate, use the time and a half calculator.
Frequently asked questions
How do you calculate overtime pay?
Multiply your hourly wage by 1.5 to get the overtime rate, then multiply by the hours over 40 in the workweek. At $25 an hour, 50 hours pays 40 × $25 + 10 × $37.50 = $1,375.
When does overtime start?
Under the federal Fair Labor Standards Act, after 40 hours in a workweek for non-exempt employees. Some states add daily overtime, for example California pays 1.5× after 8 hours in a day and 2× after 12.
Is overtime tax-free now?
Partly. For 2025 through 2028 you can deduct the premium half of required time-and-a-half pay on your federal return, up to $12,500 a year ($25,000 married filing jointly), reduced above $150,000 of income ($300,000 joint). Social Security, Medicare and state taxes still apply.
Do salaried employees get overtime?
Only if they are non-exempt. Exempt employees, generally salaried staff in executive, administrative or professional roles above the salary threshold, are not owed overtime under federal law.
Is overtime based on hours per day or per week?
Federal law uses the 40-hour workweek and does not let employers average two weeks. A few states, including California, Alaska, Nevada and Colorado, also have daily overtime rules.