Overtime Calculator 2026
Work out your overtime pay at time-and-a-half or double time, how much of it you keep after taxes in your state, and what the federal overtime deduction could give back.
| Overtime hourly rate | $37.50 |
| Overtime pay per week | $187.50 |
| Overtime pay per year | $9,750 |
| Taxes on the overtime per year | -$1,916 |
| Overtime take-home per year | $7,834 |
How overtime pay works
- Overtime rate. Federal law requires at least 1.5× your regular rate for hours over 40 in a workweek for non-exempt employees.
- Taxes. Overtime is added to your regular pay and taxed at your highest bracket, plus Social Security, Medicare and state tax.
- The overtime deduction. For 2025–2028 you can deduct the premium part of qualified overtime on your federal return, up to $12,500 a year ($25,000 married filing jointly), with a phase-out at higher incomes. It does not change Social Security, Medicare or most state taxes.
Common questions
How is overtime pay calculated?
Under federal law, non-exempt employees earn at least 1.5 times their regular hourly rate for hours over 40 in a workweek. At $25 an hour, each overtime hour pays $37.50 before tax. Some employers and states (such as California for very long days) pay double time.
Is overtime taxed more than regular pay?
No. Overtime is taxed at the same rates as the rest of your pay. It can feel like it is taxed more because the extra dollars are taxed at your highest (marginal) bracket, and withholding is calculated on the bigger paycheck.
What is the no tax on overtime deduction?
For 2025 through 2028, federal law lets you deduct the extra premium part of qualified overtime (the half in time-and-a-half) on your federal tax return, up to $12,500 a year ($25,000 married filing jointly). The deduction phases out for higher incomes and does not reduce Social Security, Medicare or most state taxes. Your paycheck withholding usually ignores it, so the saving arrives as part of your refund.
How much do I keep from an overtime hour?
At $25 an hour, 40 regular hours and 5 overtime hours a week in Texas, a single filer keeps about $30.13 of each $37.50 overtime hour after tax withholding.