Overtime Calculator

How to use the overtime calculator

1. Enter your regular hourly rate and the total hours you worked in the week.
2. Leave “Overtime starts after” blank for the federal 40-hour rule, or enter your contract’s number.
3. If some hours were paid at double time, enter how many. They’re counted inside your total hours.
4. Optionally, open the deduction section to estimate how much of your overtime could come off your federal taxable income.

Overtime pay formula

Only the extra “half” in time and a half counts toward the federal overtime deduction, because that’s the premium the Fair Labor Standards Act requires.

Worked examples

46 hours at $20 an hour

Regular pay: 40 × $20 = $800. Overtime: 6 × $30 = $180. Total: $980. The qualified overtime premium is 6 × $10 = $60.

California: 50 hours with 2 hours of double time at $25 an hour

Regular pay: 40 × $25 = $1,000. Time and a half: 8 × $37.50 = $300. Double time: 2 × $50 = $100. Total: $1,400. For the federal deduction, only the extra half for the 10 hours over 40 counts: 10 × $12.50 = $125.

No tax on overtime: what it actually means

The 2025 tax law known as the One Big Beautiful Bill Act created a federal deduction for qualified overtime pay for tax years 2025 to 2028. It doesn’t make overtime tax-free. Instead:

• You can deduct the overtime premium, the extra half of time and a half, that the FLSA requires. It doesn’t cover your regular rate for those hours.
• The deduction is capped at $12,500 a year, or $25,000 for married couples filing jointly.
• It shrinks once modified adjusted gross income is over $150,000 ($300,000 for joint filers).
• You need a valid Social Security number, and married people must file jointly to claim it.
• Social Security, Medicare and state income taxes still apply to all your overtime pay.
• Overtime paid only because of state law, a union contract or company policy, such as daily overtime or double time, generally doesn’t qualify.

You claim the deduction on your tax return. If you’d like less tax withheld during the year, you can include an estimate in Step 4(b) of the 2026 Form W-4. Our paycheck calculators show how that changes each paycheck.

States with daily overtime

Federal law only counts weekly hours, but a few states add daily rules:

• California: time and a half after 8 hours in a day and for the first 8 hours on the seventh straight workday, and double time after 12 hours in a day.
• Alaska: time and a half after 8 hours in a day, for employers with four or more employees.
• Nevada: time and a half after 8 hours in a 24-hour period, for employees earning less than $18.00 an hour.
• Colorado: time and a half after 12 hours in a day or 12 consecutive hours.

Rules have exceptions, so check your state labor department if you’re unsure.

When you’d actually use an overtime calculator

• Deciding whether to take the Saturday shift. See exactly what eight extra hours at time and a half add to your week before you give up your weekend.
• Checking your pay stub. Payroll mistakes happen. Make sure every hour over 40 was paid at the right rate.
• Planning for the holiday rush. Work out how many overtime weeks it takes to cover the gifts, or the flights home.

How we calculate

Hours up to your overtime threshold are paid at your hourly rate. Any double-time hours you enter are paid at twice the rate, and the remaining hours above the threshold are paid at 1.5 times. For the deduction estimate, we count only hours over 40 in the week at half your hourly rate, multiply by the weeks you enter, and apply the $12,500 or $25,000 limit. We don’t apply the income phase-out. Any tax saving is shown as the deduction times the bracket you choose, which is a simplification. Figures are rounded to the cent for display.