Overtime Pay Calculator with Taxes (2026): Take-Home Pay
Overtime Pay Calculator
What your extra hours really add after taxes
Full paycheck breakdown
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Estimate based on 2026 federal brackets, the standard deduction and FICA. Federal tax is your yearly tax spread across paychecks, which can differ from employer withholding. State tax uses the flat rate you enter. Not tax advice.
Working extra hours is one of the fastest ways to boost your income, but it is not always clear how much of that extra money you actually keep. Our free overtime pay calculator with taxes shows your overtime rate, your total paycheck, and your take-home pay after federal income tax, Social Security, Medicare, and state tax. It also includes the new "No Tax on Overtime" deduction for 2025 to 2028.
How overtime pay works in the United States
Under the federal Fair Labor Standards Act (FLSA), most hourly employees must be paid at least 1.5 times their regular rate for every hour worked over 40 in a workweek. This is called "time and a half." Some employers pay double time (2×) for holidays or very long shifts, but that is usually a company policy or union contract, not a federal requirement.
Overtime is counted per workweek, not per pay period. If you work 50 hours one week and 30 the next, you earn 10 hours of overtime for the first week, even if your two-week total is 80 hours. A few states, such as California, also require overtime for more than 8 hours in a single day.
Not everyone qualifies. Many salaried workers in executive, administrative, or professional roles are "exempt" and do not earn overtime. Most hourly workers are "non-exempt" and are protected by overtime rules.
How to calculate overtime pay
The basic formulas are simple:
- Overtime rate = Hourly rate × 1.5
- Overtime pay = Overtime hours × Overtime rate
- Weekly gross pay = (Regular hours × Hourly rate) + Overtime pay
Example: You earn $25 an hour and work 50 hours in a week.
- Overtime rate: $25 × 1.5 = $37.50 per hour
- Regular pay: 40 × $25 = $1,000
- Overtime pay: 10 × $37.50 = $375
- Total gross pay for the week: $1,375
How is overtime taxed?
Overtime is taxed the same way as your regular wages. There is no special higher tax rate for overtime. However, overtime can feel like it is taxed more for two reasons:
- Higher tax bracket for the extra dollars: The U.S. uses tax brackets. Extra income may fall into a higher bracket, so those extra dollars can be taxed at a higher rate. Your regular pay is not taxed more because of it.
- Paycheck withholding: Payroll systems often treat a bigger paycheck as if you earn that much every period, so they may withhold more in that check. If too much is withheld, you usually get it back as a refund when you file your tax return.
From each overtime dollar, you will normally see these deductions:
- Federal income tax: 10% to 37%, depending on your income and filing status.
- Social Security: 6.2% on wages up to $184,500 in 2026.
- Medicare: 1.45% on all wages, plus an extra 0.9% on wages above $200,000 ($250,000 for married couples filing jointly).
- State income tax: Depends on your state. Nine states have no tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
What is the "No Tax on Overtime" deduction?
Starting with the 2025 tax year and running through 2028, a new federal deduction lets eligible workers deduct part of their overtime pay from their taxable income. Here are the key rules, based on IRS guidance:
- Only the "half" counts. You can deduct only the premium part of time-and-a-half pay. If you earn $25 an hour, the extra $12.50 for each overtime hour is deductible, not the full $37.50. Extra pay above what federal law requires, such as the second "half" of double time, does not count.
- Yearly limit: Up to $12,500 for single filers and $25,000 for married couples filing jointly.
- Income limit: The deduction gets smaller once your modified adjusted gross income is over $150,000 ($300,000 for joint filers). It drops by $100 for every $1,000 over the limit.
- Federal income tax only: It does not reduce Social Security or Medicare taxes, and most states do not follow it.
- Claimed on your tax return: You claim it when you file, even if you take the standard deduction. Married couples must file jointly to qualify.
In our calculator, you can turn this deduction on or off to see the difference it makes for you.
How to use this overtime calculator
- Enter your hourly pay rate.
- Choose your overtime rate: time and a half or double time.
- Enter your regular hours (usually 40) and your overtime hours per week.
- Pick how often you are paid and your filing status.
- Add your state income tax rate if your state has one. Leave it at 0 if you live in a state with no income tax.
- If you file jointly, add your spouse's yearly pay in Other yearly income for a more accurate tax estimate.
- Your results update instantly, with a chart comparing your paycheck with and without overtime.
Example: overtime take-home pay at $25 an hour
Let's say you are single, earn $25 an hour, work 40 regular hours plus 10 overtime hours every week, are paid every two weeks, and live in a state with no income tax. With the No Tax on Overtime deduction included, the calculator estimates:
- Gross pay per paycheck: $2,750.00 ($2,000 regular + $750 overtime)
- Take-home pay per paycheck: about $2,323
- Overtime adds about $632 per paycheck after taxes
That means you keep roughly 84% of your overtime pay in this example. Your own result depends on your income, state, and filing status.
Tips to get the most from your overtime
- Check your pay stub. Make sure overtime hours and the 1.5× rate are shown correctly.
- Update your W-4 if needed. If your employer withholds too much from overtime checks, a new Form W-4 can help match withholding to what you really owe.
- Keep your records. Save pay stubs showing overtime. They can help you claim the No Tax on Overtime deduction correctly.
- Know your state rules. Some states require daily overtime or higher rates than federal law.
Frequently asked questions
How much is time and a half for $20 an hour?
Time and a half for $20 an hour is $30 per hour ($20 × 1.5). Ten hours of overtime would earn you $300 before taxes.
Is overtime taxed more than regular pay?
No. Overtime is taxed at the same rates as regular wages. It can look like more is taken out because the extra income may fall into a higher tax bracket, or because your employer withholds more from a larger paycheck.
Is overtime tax-free in 2026?
Not completely. From 2025 to 2028, you can deduct the premium "half" of qualified overtime pay from your federal taxable income, up to $12,500 ($25,000 if married filing jointly). You still pay Social Security and Medicare taxes on all overtime, and usually state tax too.
How many hours of overtime can I work?
Federal law does not limit how many overtime hours adults can work. It only requires that eligible employees are paid at least 1.5 times their regular rate for hours over 40 in a workweek.
Do salaried employees get overtime?
Some do. Salaried workers who earn below the federal salary threshold, or whose job duties do not meet the exemption rules, are still entitled to overtime pay. Check with your employer or the U.S. Department of Labor if you are not sure.
This calculator and article are for educational purposes only and are not tax advice. Tax rules can change. Please read our Disclaimer and check official IRS guidance or a tax professional for your situation.