Enter your hourly rate and hours worked to calculate overtime pay.
How Overtime Pay Works
Federal law requires 1.5 times your regular rate for every hour over 40 in a workweek. At $22 an hour that is $33 an hour, so 8 overtime hours add $264 to an $880 week, for $1,144 before tax. Enter your rate and hours above to see regular pay, overtime pay and your total for the week or pay period.
Under the federal Fair Labor Standards Act (FLSA), most non-exempt hourly employees are entitled to overtime pay of at least 1.5x their regular rate for all hours worked over 40 in a workweek. Some states have stricter rules: California requires overtime after 8 hours in a single day.
Not all workers are covered. Exempt employees (typically salaried workers earning over $684/week with administrative, executive, or professional duties) are not entitled to FLSA overtime. Many states have higher salary thresholds for the exemption.
FLSA Overtime Rules
Exempt vs Non-Exempt
Overtime on Irregular Pay
State vs Federal Rules
Overtime Pay Table by Hourly Rate
Time and a half and double time rates, plus the gross pay for a 50-hour week (40 regular hours and 10 overtime hours at 1.5x).
| Regular rate | 1.5x rate | 2x rate | 10 OT hours at 1.5x | 50-hour week total |
|---|---|---|---|---|
| $15.00 | $22.50 | $30.00 | $225 | $825 |
| $18.00 | $27.00 | $36.00 | $270 | $990 |
| $20.00 | $30.00 | $40.00 | $300 | $1,100 |
| $22.00 | $33.00 | $44.00 | $330 | $1,210 |
| $25.00 | $37.50 | $50.00 | $375 | $1,375 |
| $30.00 | $45.00 | $60.00 | $450 | $1,650 |
| $35.00 | $52.50 | $70.00 | $525 | $1,925 |
| $40.00 | $60.00 | $80.00 | $600 | $2,200 |
| $50.00 | $75.00 | $100.00 | $750 | $2,750 |
The Overtime Tax Deduction for 2025 to 2028
The One Big Beautiful Bill Act created a federal deduction for qualified overtime compensation. It covers the premium part of overtime pay, meaning the extra "half" in time and a half, not the whole overtime paycheck.
- Limit: up to $12,500 a year, or $25,000 on a joint return.
- Income phase-out: the deduction shrinks once modified adjusted gross income passes $150,000 ($300,000 joint).
- Who qualifies: only overtime the FLSA requires. Overtime paid under a state daily-overtime law or a union contract, beyond what the FLSA requires, does not count.
- Filing: you do not need to itemize, you need a Social Security number valid for work, and married couples must file jointly.
- What it does not change: it lowers federal income tax only. Social Security and Medicare tax still apply to all overtime pay, and state income tax depends on your state.
Example
You earn $25 an hour and work 5 hours of overtime a week for 50 weeks, so 250 overtime hours. The premium is $12.50 an hour, which makes $3,125 deductible. In the 12% bracket that saves $375 of federal income tax; in the 22% bracket it saves $687.50. From 2026, employers must report qualified overtime separately on your W-2.
Who Gets Overtime: Exempt vs Non-Exempt in 2026
Being paid a salary does not by itself make you exempt. To be exempt as an executive, administrative or professional employee, you must pass both tests below. Fail either one and the 40-hour rule applies to you.
| Test | Federal rule in 2026 |
|---|---|
| Salary level | At least $684 a week ($35,568 a year) |
| Highly compensated employees | $107,432 total a year, with at least $684 a week as salary |
| Salary basis | A fixed salary that is not cut for the quantity or quality of work |
| Duties | Primary duty is genuinely executive, administrative or professional |
A 2024 rule that would have raised the salary level was vacated by a federal court on 15 November 2024, and the Department of Labor enforces the 2019 levels above. Several states, including California, New York and Washington, set higher salary thresholds under state law, and the higher rule wins.
Bonuses change your overtime rate
The regular rate includes non-discretionary bonuses, commissions and shift differentials. Say you earn $20 an hour, work 45 hours and get a $90 production bonus. Straight-time pay is $900 plus $90, or $990, so the regular rate is $990 divided by 45, which is $22 an hour. The overtime premium is half of that, $11, for 5 hours, so $55. Total pay is $1,045, not the $1,040 you get by ignoring the bonus.