Calculate your overtime pay at the federal time-and-a-half (1.5x) rate for hours worked over 40 in a week.
Overtime pay this week
$240.00
8 hrs at $30.00/hr (1.5x)
Regular pay
$800
Weekly gross
$1,040
Annualized
$54,080
Estimated “no tax on overtime” benefit
Deductible OT premium
$4,160
Est. income tax saved
$915
Estimate of the temporary federal deduction on qualified overtime premium pay (2026). FICA still applies. Not tax advice.
Figures verified January 2026.
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees earn at least 1.5x their regular rate for hours worked over 40 in a workweek. The formula is simple:
Overtime pay = overtime hours × hourly rate × 1.5
Some states (like California) add daily overtime or double time, and for tax years 2026 a temporary federal income-tax deduction applies to qualified overtime premium pay. This tool is an estimate and does not constitute legal or tax advice.
Enter your hourly rate, regular hours, and overtime hours. The calculator applies the federal FLSA time-and-a-half (1.5x) premium on hours worked over 40 in a workweek, flags states with daily overtime rules (like California's over-8-and-over-12 thresholds), and estimates the temporary 2026 federal income-tax deduction on qualified overtime premium pay. FICA still applies to overtime wages.
When picking up extra shifts, comparing offers that include overtime, checking a paycheck against the overtime you expected, or planning around the 2026 'no tax on overtime' deduction.
Federal law (FLSA) requires at least 1.5x your regular rate for hours worked over 40 in a workweek. Overtime pay = overtime hours × hourly rate × 1.5 (U.S. Department of Labor).
For 2026, a temporary federal income-tax deduction applies to qualified overtime premium pay (the half-time portion above your regular rate). It reduces federal income tax owed but does not change FICA (Social Security + Medicare). This tool shows an estimate, not tax advice.
Most states follow the federal weekly 40-hour rule, but some add daily overtime. California, for example, pays 1.5x over 8 hours in a day and 2x over 12. The calculator flags these states; for a precise daily figure, enter a typical day.
Non-exempt employees are owed overtime for hours worked beyond 40 in a single workweek, regardless of immigration status (DOL). Exempt salaried roles that meet the duties and salary tests are not.
Yes — in states with a double-time threshold (like California over 12 hours in a day), the calculator adds the 2x portion when you select that state.
Overtime is taxed as ordinary wages, but a single large paycheck can be withheld at a higher rate. The 2026 deduction is reconciled at filing. Use the paycheck calculator to see take-home after federal, state, and FICA withholding.
Estimate Only
This calculator provides estimates for educational and planning purposes only. Results are based on general data and may not reflect your specific situation. Tax laws, rates, and regulations change frequently. Always consult a qualified tax professional or financial advisor before making financial decisions.
Last updated: 2026-02-01
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