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Overtime Pay Calculator

Work out your overtime rate, weekly gross pay with time-and-a-half and double time, and how much federal tax you save in 2026 with the new qualified overtime deduction.

Updated Checked against IRS Pub 15-T & state tables1.5× & 2×No tax on overtime

Your results

Weekly gross pay
$1,144.00
Overtime rate (1.5×)
$33.00/hr
Double-time rate
$44.00/hr
Regular pay
$880.00
Overtime pay
$264.00
Double-time pay
$0.00

2026 no-tax-on-overtime deduction

Qualified OT premium / yr
$4,400
Deduction allowed
$4,400
Federal tax saved / yr
$528
Saved per paycheck
$20.31

Only the extra "half" of time-and-a-half on FLSA overtime qualifies — $11.00 per overtime hour here. Social Security and Medicare are still withheld on all overtime pay.

Overtime pay formula

Weekly pay = (Rate × Regular hours) + (Rate × 1.5 × Overtime hours) + (Rate × 2 × Double-time hours)

Under the Fair Labor Standards Act, overtime is based on the workweek, not the pay period. If you work 50 hours one week and 30 the next, you're owed 10 hours of overtime even though the two weeks average 40. Your "regular rate" also has to include most non-discretionary bonuses and shift differentials, which can raise your overtime rate.

How the 2026 overtime deduction works

From 2025 through 2028, you can deduct "qualified overtime compensation" from federal taxable income:

  • Only the premium half of FLSA time-and-a-half counts. At $22/hour, that's $11 of the $33 overtime rate.
  • Capped at $12,500 a year ($25,000 married filing jointly).
  • Phases out by $100 for every $1,000 of modified AGI over $150,000 ($300,000 joint).
  • Married filing separately is not eligible. Overtime required only by state law or a union contract doesn't qualify.
  • It lowers federal income tax only. Social Security, Medicare and state taxes still apply.

Starting with 2026 W-2s, employers report qualified overtime in box 12 with code TT. To see the savings in each paycheck, claim it on Step 4(b) of a 2026 W-4. Get a detailed estimate with the no tax on overtime calculator.

Frequently asked questions

How is overtime pay calculated?

Multiply your regular hourly rate by 1.5 to get your overtime rate, then multiply by the hours you worked over 40 in the workweek. At $22/hour, overtime pays $33/hour, so 8 overtime hours adds $264 to your week.

What is time and a half for $20 an hour?

Time and a half for $20 an hour is $30 an hour ($20 × 1.5). Double time is $40 an hour.

When does double time apply?

Federal law doesn’t require double time. California requires 2× for hours over 12 in a day and over 8 on the seventh consecutive workday. Many union contracts and employers pay double time for holidays. Double-time pay doesn’t count as "qualified overtime" for the new deduction beyond the standard 0.5× premium.

Is overtime taxed more than regular pay?

No. Overtime is taxed at the same rates, but a bigger paycheck can push that period’s withholding up, so it can look like a higher rate. Starting in 2025, the FLSA premium portion is deductible from federal income tax up to $12,500 ($25,000 joint).

Who is entitled to overtime?

Non-exempt employees covered by the FLSA must get overtime for hours over 40 in a workweek. Most salaried executive, administrative and professional employees earning at least $684 a week are exempt. Some states, including California, Alaska, Nevada and Colorado, also require daily overtime.

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