How to calculate overtime pay
To calculate overtime pay, multiply the hours you worked over 40 in the workweek by your hourly wage times 1.5, then add your regular pay for the first 40 hours. At $25 an hour for 48 hours, that's $1,000 of regular pay plus $300 of overtime, or $1,300 for the week before taxes.
- Start with your regular hourly rate.
- Count the hours you actually worked in that one workweek.
- Split them: the first 40 are regular hours, and anything over 40 is overtime.
- Pay the regular hours at your rate and the overtime hours at 1.5 times your rate.
- Add the two together for your gross weekly pay.
Gross weekly pay = (regular hours × hourly wage) + (overtime hours × hourly wage × 1.5)
The formula
Regular pay
Hours worked up to 40 × your hourly wage
Overtime rate
Your hourly wage × the overtime multiplier (1.5 for time and a half)
Overtime wages
Hours over 40 × your overtime rate
Gross weekly pay
Regular pay + overtime wages
Extra overtime premium
Hours over 40 × your hourly wage × (multiplier − 1)
What it assumes
- You're paid by the hour and are eligible for overtime under federal law.
- Overtime starts after 40 hours actually worked in one workweek.
- Your hourly wage is your full regular rate, with no bonuses or commissions to add to it.
- Each workweek is worked out on its own, never averaged with another week.
- Pay is gross, before taxes and deductions.
What it doesn't include
- State overtime rules, including daily overtime
- Whether your job is exempt from overtime
- Salaried pay
- Bonuses, commissions, tips or a second pay rate
- Paid time off and holidays
- Income tax, payroll tax and the overtime tax deduction
Worked example
$25 an hour, 48 hours in one workweek
- Regular pay (40 × $25)
- $1,000.00
- Overtime rate ($25 × 1.5)
- $37.50
- Overtime wages (8 × $37.50)
- $300.00
- Total gross pay
- $1,300.00
Your regular rate isn't always just your hourly wage. The Department of Labor says all pay for the work you do counts toward it, so a promised bonus or a commission can raise the rate your overtime is based on. The calculator assumes your hourly wage is the whole regular rate.
What is time and a half?
Time and a half means 1.5 times your regular hourly wage. If you earn $20 an hour, each overtime hour pays $30: your usual $20 plus another $10. Double time is twice your rate, so $40 an hour at the same wage.
| Regular hourly wage | Time and a half (1.5×) | Double time (2×) |
|---|---|---|
| $15.00 | $22.50 | $30.00 |
| $20.00 | $30.00 | $40.00 |
| $25.00 | $37.50 | $50.00 |
| $30.00 | $45.00 | $60.00 |
| $40.00 | $60.00 | $80.00 |
Overtime pay for 45, 48, 50 and 60 hours
Here's one workweek at $25 an hour with time and a half. Regular pay stops growing at 40 hours, and every hour after that pays $37.50.
| Hours worked | Overtime hours | Regular pay | Overtime wages | Gross weekly pay |
|---|---|---|---|---|
| 40 | 0 | $1,000.00 | $0.00 | $1,000.00 |
| 45 | 5 | $1,000.00 | $187.50 | $1,187.50 |
| 48 | 8 | $1,000.00 | $300.00 | $1,300.00 |
| 50 | 10 | $1,000.00 | $375.00 | $1,375.00 |
| 60 | 20 | $1,000.00 | $750.00 | $1,750.00 |
Going from 40 to 60 hours adds $750 to the week, which is 75% more pay for 50% more hours.
When overtime starts: the 40-hour workweek
Under the Fair Labor Standards Act, eligible employees earn overtime for hours worked over 40 in a workweek. The Department of Labor defines a workweek as a fixed and regularly recurring period of 168 hours, or seven days in a row.
Each workweek stands alone. The Department of Labor says hours can't be averaged across two or more weeks. If you work 50 hours one week and 30 the next, the first week still has 10 hours of overtime, even though the two weeks average 40. Federal law also counts hours per week, not per day, so a 10-hour shift doesn't earn overtime by itself if the week stays at 40 or less.
State laws can set their own overtime rules, and some give workers more than federal law does. If you work in a state with its own rules, check your state labor department, because this calculator applies the federal weekly rule only.
Overtime wages vs the overtime premium
These two numbers are easy to mix up. In the $25 an hour, 48-hour example:
- $300 is your overtime wages: all the pay for the 8 overtime hours, at $37.50 each.
- $200 of that is straight time: what those 8 hours would pay at your normal $25.
- $100 is the overtime premium: the extra half, $12.50 for each overtime hour.
The premium is part of the $300, not something added on top. Your week is $1,300 either way you count it: $1,000 regular plus $300 overtime, or $1,200 of straight time for all 48 hours plus the $100 premium.
Is overtime taxed differently in 2026?
Overtime is still taxed as wages. The IRS says overtime pay remains subject to federal income tax withholding, Social Security and other employment taxes, so overtime on your paycheck is taxed like the rest of your pay.
What's new is an income tax deduction for qualified overtime, available from 2025 through 2028. According to the IRS, it covers only the part of overtime pay above your regular rate, such as the extra half of time and a half, and only for overtime the Fair Labor Standards Act requires. The deduction is up to $12,500 a year, or $25,000 on a joint return, and it shrinks once modified adjusted gross income passes $150,000, or $300,000 for joint filers. Starting with the 2026 tax year, employers report qualified overtime on Form W-2 in box 12 with code TT.
This calculator shows gross pay only. It doesn't estimate taxes, take-home pay or whether you qualify for the deduction.
Frequently asked questions
Pay the first 40 hours at your regular rate and the other 5 at time and a half. At $20 an hour, that's 40 × $20 = $800, plus 5 × $30 = $150, so $950 for the week before taxes.
Time and a half is the federal minimum for eligible employees after 40 hours in a workweek. An employer or contract can pay more, some state laws require more, and some jobs are exempt from overtime altogether, so it isn't guaranteed for every worker.
Not under federal law. The Department of Labor says the Fair Labor Standards Act doesn't require extra pay for weekend or night work, or double time at all. Some employers, union contracts and state laws do pay more for those hours.
Federal overtime is based on hours you actually work, and the Department of Labor says the law doesn't require pay for time not worked, such as vacation, sick leave or holidays. So paid time off generally doesn't count toward the 40, unless your employer's policy or your state's law says it does.
Yes, if they aren't exempt. Common exemptions cover certain executive, administrative and professional employees, outside sales employees and some computer-related jobs, and they depend on the job's duties and pay, not just the title. Working out a salaried employee's overtime takes more than this calculator, but the salary to hourly calculator shows the rough hourly equivalent of a salary.
Sources
6 public sources, strongest evidence first.
- Overtime Pay
Government · U.S. Department of Labor, Wage and Hour Division · Accessed
- Fact Sheet #23: Overtime Pay Requirements of the FLSA
Government · U.S. Department of Labor, Wage and Hour Division · Accessed
- Fact Sheet #56A: Overview of the Regular Rate of Pay Under the FLSA
Government · U.S. Department of Labor, Wage and Hour Division · Accessed
- Questions and Answers About the Fair Labor Standards Act
Government · U.S. Department of Labor, Wage and Hour Division · Accessed
- Questions and answers about the deduction for qualified overtime compensation (FS-2026-13)
Government · Internal Revenue Service · Accessed
- Working Families Tax Cuts, individuals and workers
Government · Internal Revenue Service · Accessed