How to calculate overtime pay
- Enter your hourly rate.
- Enter the regular hours and the overtime hours for the pay period.
- Choose the multiplier your employer uses — 1.5× is "time and a half", 2× is "double time".
Worked example
At $20.00 an hour, 40 regular hours pay $800.00. The overtime rate is $20.00 × 1.5 = $30.00. Six overtime hours pay 6 × $30.00 = $180.00. Gross pay for the week is $980.00.
About overtime rules
The federal rule, under the Fair Labor Standards Act, is that covered employees who are not exempt must be paid at least 1.5× their regular rate for hours worked over 40 in a workweek.
A workweek is a fixed, recurring period of 168 hours — seven consecutive 24-hour days. It does not have to match the calendar week and can begin on any day and at any hour, as long as it stays put. Hours may not be averaged across two or more weeks, which is why a 50-hour week followed by a 30-hour week is ten hours of overtime rather than none.
Federal law sets no daily threshold and requires nothing extra for Saturdays, Sundays, holidays or rest days as such — only for hours past 40 in the week. Several states go further, including daily overtime, and where a state rule is better for the employee it is the one that applies.
Whether a particular job is exempt depends on how someone is paid, how much, and what they actually do. Job titles do not decide it. The federal salary level is $684 a week, and $107,432 a year for the highly-compensated route; meeting it is necessary and not sufficient, because the duties test still has to be met. Several states set a higher floor than the federal one.
Source: the U.S. Department of Labor's Wage and Hour Division. This is a summary of the common case, not legal, tax or payroll advice, and this site is not affiliated with the Department of Labor. Check the rule that applies where you work.
Overtime and the federal tax deduction
The figure above is gross pay — what is earned, before any tax or deduction. That does not change.
Separately, for tax years 2025 through 2028, federal law allows a deduction for part of overtime pay on the federal income tax return. It applies to the portion that exceeds the regular rate — at $20.00 an hour and 1.5×, the overtime rate is $30.00 and the deductible part is the $10.00 above the regular rate, not the whole $30.00. It covers overtime required under the Fair Labor Standards Act, and the pay has to be reported on a W-2, a 1099 or another statement.
The deduction is capped at $12,500, or $25,000 for joint filers, and it phases out above $150,000 of modified adjusted gross income — $300,000 filing jointly.
Source: the IRS, What to know about the no tax on overtime deduction, and Notice 2025-69. A summary of the rule, not tax advice, and this site is not affiliated with the IRS. How it applies to a particular return is a question for the IRS or an accountant.
Frequently asked questions
When does overtime start?
Under federal law, after 40 hours in a workweek — a fixed, recurring period of 168 hours that can begin on any day and at any hour, not necessarily Monday. Some states start it sooner, and some count it by the day rather than the week. Enter the overtime hours your employer counts; the calculator does not decide which hours qualify.
What is double time?
Overtime paid at 2× the hourly rate. Choose 2× in the multiplier switch.
Does biweekly change the result?
Only the label. Federal law counts overtime week by week and does not allow hours to be averaged across two or more weeks — 50 hours followed by 30 is ten hours of overtime, not none. For a biweekly period, run each week on its own, or enter the regular and overtime hours for both weeks together once you have worked them out.
Does this include taxes?
No. The result is gross pay. Taxes and deductions depend on where you live and your withholding.
What about "no tax on overtime"?
For tax years 2025 through 2028 there is a federal income tax deduction for part of overtime pay — the portion above the regular rate, not the whole overtime payment — capped at $12,500, or $25,000 for joint filers, and phasing out above $150,000 of modified adjusted gross income. It is claimed on the tax return and does not change gross pay, so the figure this calculator shows is the same either way. See the section above for the IRS source.
What if I am salaried?
Being paid a salary does not by itself mean overtime does not apply. The exemption has three parts — how you are paid, how much, and what you actually do — and job titles do not determine exempt status. If overtime does apply, convert the salary to an hourly rate first, then use that rate here.