Overtime Pay
Overtime Pay Calculator 2026
How overtime hours affect your gross pay, taxes, and take-home pay.
Overtime pay formula
Federal law (FLSA) requires non-exempt employees to receive at least 1.5× their regular rate for hours over 40 in a workweek. The formula is:
Overtime pay = Hours over 40 × (Regular hourly rate × 1.5)
Overtime and taxes
Overtime wages are ordinary income — subject to federal income tax, Social Security (6.2%), Medicare (1.45%), and state income tax. There is no separate "overtime tax rate." Working overtime increases your annual taxable income, which may push more of your earnings into a higher marginal federal bracket.
How to calculate overtime take-home pay
- Calculate your total annual income including overtime hours
- Enter that combined salary into the Exact Take Home calculator
- Compare the result against your baseline salary to see the net overtime impact
Model your overtime income in the paycheck calculator — enter your total annual salary including overtime.
Open calculator →Frequently Asked Questions
How is overtime pay calculated?
Under the FLSA, non-exempt employees must receive at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. For example, a $25/hr employee earns $37.50/hr for overtime hours. Some employers pay double-time for certain conditions, but 1.5× is the federal minimum.
Is overtime taxed at a higher rate?
Overtime is not taxed at a different rate than regular wages — it is ordinary income subject to the same marginal federal brackets, FICA, and state taxes. However, earning more income in a pay period can push your withholding into a higher bracket for that period, which may feel like a higher tax rate. Your annual effective rate is determined at filing.
Does overtime affect Social Security and Medicare?
Yes. Overtime wages are subject to Social Security (6.2%, up to the wage base) and Medicare (1.45%) the same as regular wages.
How do I estimate my overtime take-home pay?
Multiply your overtime hours by 1.5× your hourly rate to get overtime gross pay. Add that to your regular annual salary and run the combined total through the paycheck calculator to see the after-tax impact.
Estimates only. Not tax, legal, or accounting advice. Terms of Service · Privacy Policy