Overtime pay calculator
Federal law requires 1.5× your regular rate for every hour over 40 in a workweek. Say you earn $20 an hour and work 50 hours. That pays $800 regular + $300 overtime = $1,100.
| Type | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40 | $20.00 | $800.00 |
| Overtime (1.5×) | 10 | $30.00 | $300.00 |
| Double time (2×) | 0 | $40.00 | $0.00 |
How overtime is calculated
Overtime pay = regular rate × 1.5 × overtime hours. Double time, where it applies, is regular rate × 2. The Fair Labor Standards Act counts hours per workweek. A workweek is a fixed 168-hour period. It is not a day, and it is not a pay period. The Fair Labor Standards Act also doesn’t let an employer average two weeks together. So 50 hours one week and 30 the next still means 10 hours of overtime.
- Regular pay: $20 × 40 = $800.
- Overtime rate: $20 × 1.5 = $30 an hour.
- Overtime pay: $30 × 10 = $300.
- Total for the week: $800 + $300 = $1,100.
California daily overtime
California Labor Code §510 adds daily rules on top of the weekly rule. Hours over 8 in a workday pay 1.5×. Hours over 12 in a workday pay 2×. The seventh straight workday in a workweek has its own rule. The first 8 hours pay 1.5×, and anything past 8 pays 2×.
Here’s a 13-hour day at $25 an hour: 8 h × $25 + 4 h × $37.50 + 1 h × $50 = $400.00. Look at that last hour. It pays $50, twice the base rate.
Overtime rates by hourly wage
| Regular rate | Time and a half | Double time | Week with 10 h OT |
|---|---|---|---|
| $15.00 | $22.50 | $30.00 | $825.00 |
| $18.00 | $27.00 | $36.00 | $990.00 |
| $20.00 | $30.00 | $40.00 | $1,100.00 |
| $25.00 | $37.50 | $50.00 | $1,375.00 |
| $30.00 | $45.00 | $60.00 | $1,650.00 |
| $40.00 | $60.00 | $80.00 | $2,200.00 |
Is overtime taxed differently?
Overtime is wages. So overtime owes Social Security, Medicare and state tax like any other pay. The federal income tax side changed, though. For tax years 2025 through 2028, the One Big Beautiful Bill Act lets eligible workers deduct part of their overtime. The deductible part is the FLSA-required premium. In other words, the “half” in time and a half. The cap is $12,500 a year ($25,000 for joint filers). It phases out above $150,000 of modified AGI ($300,000 joint). See the IRS One Big Beautiful Bill provisions page.
Frequently asked questions
Who is not entitled to overtime?
Exempt employees. In general, that means salaried workers paid at least $684 a week. Their main duties must be executive, administrative or professional. Some specific jobs are exempt too. A salary alone does not make you exempt.
Is double time required by federal law?
No. The FLSA only requires 1.5× for hours over 40 a week. Double time comes from state law, like California's. It also comes from union contracts or employer policy.
Do bonuses change my overtime rate?
Often, yes. Nondiscretionary bonuses must go into the regular rate. Those are bonuses for production, attendance or safety. A higher regular rate means a higher overtime rate for that period.
Does paid time off count toward the 40 hours?
Not under the FLSA. Only hours actually worked count. Say you get 8 hours of holiday pay and work 40 hours. That week has no federal overtime. Some employers count it anyway.
How much overtime is tax-deductible?
Only the premium half. On a $20 rate, that's $10 of each $30 overtime hour. The deduction is capped at $12,500 a year for single filers. It applies to tax years 2025 through 2028.
Sources
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Updated: October 2, 2026 · Sources and methodology