Overtime Pay Calculator
Under the Fair Labor Standards Act, hours worked beyond 40 in a week must be paid at no less than 1.5 times your regular rate. At $20/hour, a 45-hour week pays $800 regular plus $150 overtime — $950 gross. Only the premium part of that overtime can also be deducted at tax time under the 2025–2028 'no tax on overtime' rule.
Calculate gross overtime pay
How overtime works
The FLSA counts overtime per workweek, not per day or per pay period: 45 hours in one week means 5 overtime hours even if the next week is light. Your 'regular rate' can be higher than your base wage if you receive nondiscretionary bonuses or shift differentials, which raises the overtime rate too. Some states add their own rules — daily overtime after 8 hours in California and Alaska, for example — and union contracts or employer policies may be more generous than the legal minimum.
Frequently asked questions
How is overtime pay calculated?
Hours beyond 40 in a workweek are paid at least 1.5 times the regular rate under the Fair Labor Standards Act. Example: at $20/hour, 40 regular hours pay $800 and 5 overtime hours pay 5 × $30 = $150, for $950 gross that week.
Who is entitled to overtime?
Most hourly ('non-exempt') employees. Many salaried executive, administrative and professional employees are 'exempt' if they meet the duties tests and earn at least $684 per week ($35,568 a year) under the FLSA salary threshold. State rules can be stricter — California, for example, also has daily overtime.
Is overtime taxed differently?
Overtime pay is taxed as ordinary wages for withholding, Social Security and Medicare. New for 2025-2028: the premium half of FLSA overtime can be deducted on your federal return — see the No Tax on Overtime Calculator.
What is double time?
Double time (2×) is not required by federal law but is offered by some employers or required by some state laws and union contracts for Sundays, holidays or very long days. This calculator lets you select a 2× multiplier.