Calculator › Overtime pay calculator
Enter your hourly rate and overtime hours to see what the extra hours add to your yearly take-home pay after tax.
Rules reviewed November 2026.
It adds your overtime pay to your regular pay, annualizes it, and runs the result through the 2026 federal tax rules, FICA and your state's income tax. Comparing take-home pay with and without overtime shows what the extra hours are really worth.
Federal law (the Fair Labor Standards Act) generally requires at least 1.5 times your regular rate for hours over 40 in a workweek for non-exempt employees. Some states add daily overtime or double time. Your employer's policy or a union contract can be more generous.
Overtime is taxed at your top bracket, so you usually keep somewhere around 70 to 80 cents of each overtime dollar before state tax. For a worker earning $20 an hour, ten overtime hours a week add about $12,535 of yearly take-home pay in a state with no income tax. Earning more never reduces your take-home pay.
Read more in overtime pay and taxes.
No. Overtime is regular income. It can be withheld at a higher rate when a large paycheck makes your annual income look higher, but the tax on your return is based on your actual income.
It can move part of your income into a higher bracket, but only the dollars above the threshold are taxed at the higher rate. Your total take-home pay still rises.
Many salaried employees in executive, administrative or professional roles are exempt, as are some other categories. Rules depend on duties and salary level, so check with your state labor department.