How to Calculate Overtime Pay
Overtime pay = Regular rate × 1.5 × Overtime hours
Overtime pay is calculated in 3 steps: find the overtime rate ($20 × 1.5 = $30), multiply by the overtime hours ($30 × 10 = $300), and add regular pay ($800 + $300 = $1,100).
Partial hours count by the minute. Thirty minutes of overtime is 0.5 hours: 0.5 × $30 = $15.
The regular rate includes shift differentials and nondiscretionary bonuses. The Shift Differential Calculator blends them into the overtime rate.
Overtime Rules: FLSA and State Law
- Federal rule: the Fair Labor Standards Act requires 1.5 times the regular rate after 40 hours in a workweek for non-exempt employees.
- Daily overtime: California pays 1.5 times after 8 hours in a day and double time after 12 hours. Alaska and Nevada also have daily overtime rules.
- No daily limit federally: a 12-hour day inside a 40-hour week earns no federal overtime.
- Exempt employees: salaried executive, administrative and professional staff above the salary threshold receive no overtime.
Overtime Pay After Tax
Overtime pay is taxed as ordinary wages, at the same rates as regular pay. A large overtime paycheck looks heavily taxed because payroll software annualizes it, as if every week paid that much.
From tax year 2025 through 2028, the One Big Beautiful Bill Act lets workers deduct up to $12,500 of qualified overtime premium ($25,000 joint) on the federal return. The premium is the extra half in time and a half. Social Security, Medicare and state tax still apply.
| Overtime hours / week | Overtime pay (gross) | Overtime after tax |
|---|---|---|
| 5 hours at $30 | $150 | $120.53 |
| 10 hours at $30 | $300 | $241.05 |
| 15 hours at $30 | $450 | $361.58 |
| 20 hours at $30 | $600 | $469.98 |
Double Time Pay
Double time pays 2 times the regular rate for each hour. Federal law does not require it; state law, union contracts and employer policy do.
Ten double time hours at a $20 rate pay $400, against $300 at time and a half. California requires double time after 12 hours in one workday and after 8 hours on the seventh straight workday in a workweek.
Choose "2× (double time)" in the calculator to switch the multiplier.
Overtime for Salaried Employees
A salaried employee who is non-exempt earns overtime on a regular rate found by dividing the weekly salary by the hours it is meant to cover.
A $1,000 weekly salary for a 40-hour week gives a regular rate of $25 and an overtime rate of $37.50. Six overtime hours add $225 to the week.
Under the fluctuating workweek method, a salary that covers all hours worked pays only the extra half: the regular rate is the salary divided by all hours that week, and each overtime hour adds half of that rate. The employer must agree to this in advance and pay the salary in full even in short weeks.
Overtime in Minutes and Partial Hours
Overtime in minutes is converted to decimal hours, then multiplied by the overtime rate. The table uses a $20 regular rate, so the overtime rate is $30.
| Overtime | Decimal hours | Overtime pay |
|---|---|---|
| 15 minutes | 0.25 | $7.50 |
| 30 minutes | 0.5 | $15 |
| 45 minutes | 0.75 | $22.50 |
| 90 minutes | 1.5 | $45 |
Employers may round time clocks to the nearest 5, 6 or 15 minutes only if the rounding evens out over time and does not always favor the employer.
The Federal Overtime Tax Deduction
The overtime tax deduction is a federal income tax deduction for the premium part of overtime pay, created by the One Big Beautiful Bill Act for tax years 2025 through 2028.
- What counts: only the extra half of time and a half that the FLSA requires. At a $20 rate, $10 of each $30 overtime hour.
- Limit: up to $12,500 a year, or $25,000 on a joint return.
- Income limit: the deduction shrinks by $100 for each $1,000 of modified adjusted gross income over $150,000, or $300,000 joint.
- What it does not cut: Social Security, Medicare and state income tax still apply to all overtime pay.
The deduction is claimed on the yearly tax return, so it lowers the tax owed or raises the refund, not the weekly paycheck. Ten overtime hours a week at $20 create $5,200 of premium in a year, within the limit.
Overtime Over a Biweekly Pay Period
Overtime is counted week by week, never across a 2-week pay period. A biweekly paycheck with 50 hours in week one and 30 hours in week two owes 10 overtime hours, even though the 2 weeks add up to 80 hours.
At $20 an hour, that pay period pays $1,700, not $1,600. A workweek is any fixed 7-day period the employer chooses; it does not have to start on Monday.
Frequently Asked Questions
How do you calculate 1.5 overtime?
You calculate 1.5 overtime by multiplying the hourly rate by 1.5 and then by the overtime hours. At $18 an hour, the overtime rate is $27 and 6 overtime hours pay $162.
How do you calculate 30 minutes of overtime?
You calculate 30 minutes of overtime by multiplying the overtime rate by 0.5. At a $30 overtime rate, 30 minutes pays $15.
Is overtime taxed more than regular pay?
No. Overtime is taxed at the same rates as regular pay. Withholding on a large paycheck is higher because payroll annualizes it; the tax return settles the real tax.
Is overtime worth it after taxes?
Yes, at most wages. Each overtime hour at $30 keeps $24.11 after 2026 federal tax and FICA for a single filer with no state income tax.
How is double time calculated?
Double time is calculated by multiplying the regular rate by 2 and then by the double time hours. At $22 an hour, 4 double time hours pay $176.
Do salaried employees get overtime?
Salaried employees get overtime only if they are non-exempt. Exempt status needs both a salary above the federal threshold and executive, administrative or professional duties.
Is overtime calculated per week or per pay period?
Overtime is calculated per workweek. Hours from two weeks cannot be averaged, so a 50-hour week owes 10 overtime hours even if the next week has 30 hours.
Does the no tax on overtime rule apply to my paycheck?
No. The overtime deduction is claimed on the yearly federal tax return. Each paycheck is still withheld as normal, and Social Security, Medicare and state tax still apply.