How is overtime pay calculated?

Overtime is typically calculated as 1.5 times your regular hourly rate for any hours worked over 40 in a single workweek. The formula is: Overtime Pay = Overtime Hours × (Hourly Rate × 1.5).

Is overtime taxed differently than regular pay?

No, overtime is not taxed at a different rate. However, it is considered 'supplemental income,' so it may be withheld at a higher flat rate (like 22% federally), making your paycheck seem smaller. The final tax you owe is based on your total annual income, so any over-withholding is returned as a refund.

Free Overtime Pay Calculator (2026)

Use our simple overtime calculator to see how your extra hours affect your total gross pay. Instantly calculate your earnings with time and a half (1.5x) or double time (2x) pay rates.

Regular Hourly Wage ($)

Regular Hours Worked

Overtime Hours Worked

Overtime Rate

Your Estimated Gross Pay

Total Gross Pay (Before Taxes)

$0.00

Regular Pay

$0.00

Overtime Pay

$0.00

How to Calculate Overtime Manually

Under the Fair Labor Standards Act (FLSA), most hourly employees in the U.S. are entitled to overtime pay for any hours worked over 40 in a single workweek. The standard rate is "time and a half."

Time and a Half Formula:

Overtime Rate: Regular Hourly Rate × 1.5
Overtime Earnings: Overtime Rate × Overtime Hours Worked
Total Pay: (Regular Hours × Regular Rate) + Overtime Earnings

For example, if you earn $20/hour and work 45 hours:

(40 hours × $20) + (5 hours × ($20 × 1.5)) = $800 + $150 = $950

Overtime Rates Explained

Time and a Half (1.5x)

This is the most common overtime rate, mandated by federal law for non-exempt employees who work more than 40 hours in a week. It means for every hour of overtime, you earn 150% of your regular wage.

Double Time (2x)

Double time is not required by federal law, but some states (like California) mandate it for work performed after 12 hours in a single day or for work on the seventh consecutive day. Some employers may also offer it as a benefit for working on holidays.

Frequently Asked Questions

How is overtime calculated?

Overtime is calculated based on hours worked within a single 7-day workweek. For most employees, any hours over 40 are paid at 1.5 times their regular hourly rate. Our calculator uses this standard formula.

Is overtime pay taxed differently than regular pay?

No, overtime is taxed as ordinary income, just like your regular wages. However, because it increases your total earnings for a pay period, it is often withheld at a higher supplemental rate (like a bonus). This can make it seem like it's taxed more, but it all reconciles when you file your annual tax return. To see the after-tax impact, use our Bonus Tax Calculator.

Are salaried employees eligible for overtime?

It depends. Salaried employees are classified as either "exempt" or "non-exempt." Most salaried administrative, professional, and executive employees are exempt and not eligible for overtime. However, salaried non-exempt employees (those who earn below a certain salary threshold) are still entitled to overtime pay.