Home › Finance Calculators › Overtime Pay Calculator
Overtime Pay Calculator
Working extra hours should mean extra money in your pocket, but taxes take a bite out of every overtime hour. This free overtime pay calculator with taxes shows your regular pay, overtime pay at time-and-a-half or double time, and an estimated take-home amount after taxes. Enter your hours and hourly rate to see the full breakdown in seconds.
A blended estimate of your federal, state and payroll taxes.
How to use
- Enter your regular hours, overtime hours and hourly rate.
- Choose time-and-a-half (1.5x) or double time (2x).
- Enter your estimated combined tax rate.
- Click Calculate to see gross pay, tax and take-home.
Worked example
Suppose you earn $20 per hour and work 40 regular hours plus 10 overtime hours at time-and-a-half, with a 22 percent estimated tax rate.
Regular pay is 40 x $20 = $800. Your overtime rate is $20 x 1.5 = $30 per hour, so overtime pay is 10 x $30 = $300. Gross pay is $800 + $300 = $1,100. Estimated tax is $1,100 x 22% = $242, leaving an estimated take-home of $858 for the week.
The 40-hour rule in plain English
The federal overtime rule is weekly, not daily: hours beyond 40 in one workweek earn the premium. A 10-hour Monday does not trigger overtime by itself under federal law.
Some states go further. California, Alaska and Nevada require daily overtime after 8 hours, and California requires double time after 12 hours in a day. If you work in one of those states, your actual overtime may be higher than the federal minimum this calculator assumes.
Frequently asked questions
Is overtime taxed at a higher rate?
No. Overtime is taxed as ordinary income at the same rates as your regular pay. However, extra overtime income can push part of your earnings into a higher marginal tax bracket, so the additional dollars may be taxed more. Only the amount above each bracket threshold is taxed at the higher rate.
How is time-and-a-half calculated?
Multiply your regular hourly rate by 1.5, then multiply by your overtime hours. For example, at $20 per hour, time-and-a-half is $30 per hour, so 10 overtime hours earn $300. Double time simply doubles the rate instead.
Do all employees qualify for overtime pay?
Under the federal Fair Labor Standards Act, most hourly (non-exempt) employees must receive at least 1.5x pay for hours over 40 in a workweek. Many salaried executive, administrative and professional workers are exempt if they earn at least $684 per week. A few states also require daily overtime.
Why does withholding look so high on my overtime check?
Payroll systems annualize each paycheck, so a big overtime week can make the system assume a higher yearly income and withhold more. You get any over-withholding back when you file your tax return. It is a timing effect, not a higher tax rate.
Do weekends and holidays automatically count as overtime?
No. Federal law only requires the overtime premium for hours worked beyond 40 in a single workweek. Extra pay for weekends, nights or holidays is an employer policy or union agreement unless those hours push you over 40.
What counts toward the 40 hours?
Generally only hours actually worked. Paid time off, sick days and holidays usually do not count toward overtime hours unless your employer or state says otherwise.
How accurate is this calculator's tax estimate?
It is a planning estimate. Real withholding depends on your W-4 elections, filing status, pre-tax deductions like a 401(k), and your state. Use your actual effective tax rate from last year's return for the closest estimate.