Overtime Calculator — Time and a Half & Take-Home Pay
Calculate your time and a half overtime pay, regular vs overtime wage split, and true after-tax take-home earnings per week, paycheck, and year.
Time and a Half Overtime Calculator
Tax Year 2026FLSA 1.5x rate • Regular vs Overtime split • Marginal after-tax take-home
0% state income tax. Every extra dollar earned stays subject only to federal & FICA taxes.
$41,600.00 regular + $7,800.00 overtime
Includes $6,579.30 net overtime take-home
Regular Pay vs Overtime Earnings Split
45 Total Weekly Hours| Compensation Type | Hours Rate | Weekly Gross | Annual Gross | Est. Biweekly Net | Est. Annual Net |
|---|---|---|---|---|---|
| Regular Hours | 40h @ $20.00/hr | $800.00 | $41,600.00 | $1,369.45 | $35,605.60 |
| Overtime Hours (1.5x) | 5h @ $30.00/hr | $150.00 | $7,800.00 | +$253.05 | +$6,579.30 |
| Combined Total | 45h Total | $950.00 | $49,400.00 | $1,622.50 | $42,184.90 |
Net cash kept from 5 overtime hours
Extra take-home per 2-week paycheck (10h OT)
Pub. L. 119-21 Sec. 224 federal taxable income reduction
Calculates FLSA time and a half (1.5x). Double-time (2x) depends on employer policy or state daily-overtime rules and is not modeled.
How to Calculate Time and a Half Overtime
Under the federal Fair Labor Standards Act (FLSA), covered non-exempt employees must receive overtime pay for all hours worked exceeding 40 in a workweek at a rate not less than time and one-half (1.5×) their regular rate of pay.
To calculate total weekly compensation with overtime, calculate your regular earnings for the first 40 hours, calculate your overtime hours at 1.5×, and combine both:
- 1. Overtime Hourly Rate: $20.00/hr × 1.5 = $30.00/hour.
- 2. Regular Weekly Gross: $20.00 × 40 regular hours = $800.00/week.
- 3. Overtime Weekly Gross: $30.00 × 5 overtime hours = $150.00/week ($7,800.00/year gross OT).
- 4. Total Combined Gross: $800.00 + $150.00 = $950.00/week ($49,400.00/year gross).
- 5. Estimated After-Tax Take-Home: After federal income tax, FICA, and 0% Texas state tax, you keep $42,184.90/year total. The 5 overtime hours contribute an extra +$6,579.30/year in net take-home cash (+$126.53/week or +$253.05 per biweekly paycheck).
Is Overtime Taxed Higher Than Regular Pay?
A widespread myth among hourly workers is that overtime pay is taxed at a separate, punitive tax rate. In reality, overtime is taxed as ordinary income under the exact same marginal income tax brackets as regular base wages.
The misconception arises because employer payroll software follows IRS Publication 15-T withholding tables. When you work substantial overtime during a single pay period, the payroll algorithm annualizes that individual check as if you made that elevated amount every pay period of the year, temporarily bumping withholding into a higher marginal bracket. Any excess tax withheld is credited or refunded when you file your annual tax return.
Under enacted Tax Year 2026 federal tax law, non-exempt hourly employees can deduct the 0.5× overtime premium portion from their federal taxable income.
This deduction directly shelters overtime premium earnings from federal income tax, allowing hourly workers to retain even more of their hard-earned overtime dollars.
Overtime & Time and a Half FAQs
Q1:How do I calculate time and a half overtime pay?
Under the Fair Labor Standards Act (FLSA), time and a half overtime pay is calculated by multiplying your regular hourly base rate by 1.5: Regular Rate × 1.5 = Overtime Rate. For example, if your base pay is $20.00 per hour, your overtime rate is $30.00 per hour ($20.00 × 1.5). If you work 5 overtime hours in a week, you earn $150.00 in gross overtime pay (5 hours × $30.00/hr), totaling $950.00 in weekly gross earnings when combined with your 40 regular hours ($49,400.00/year).
Q2:Is overtime pay taxed higher than regular pay?
No. Overtime pay is not taxed at a higher statutory tax rate. Overtime earnings are combined with your regular wages and taxed according to your standard annual marginal tax brackets. However, because payroll withholding tables annualize each single paycheck as if you earned that higher amount all year, higher federal and state taxes may be withheld during pay periods with heavy overtime. Any excess withholding is refunded when filing your annual return. In Texas for a single filer earning $20.00/hr with 5 weekly OT hours, you take home an estimated $6,579.30 of your $7,800.00 gross overtime (about 84.4% kept), totaling $42,184.90 in overall annual take-home pay.
Q3:How does the 2026 federal overtime tax deduction work?
Beginning in Tax Year 2026 under Public Law 119-21 Sec. 224, eligible hourly employees can deduct the 0.5× overtime premium portion from federal taxable income. For example, on a $20.00/hr wage with a $30.00/hr overtime rate, the $10.00/hr premium portion is deductible from federal income tax. For 5 overtime hours per week, this deduction equals $2,600.00 annually ($10.00/hr × 5 hours × 52 weeks). The deduction is capped at $12,500 for single filers ($25,000 for married couples filing jointly) and phases out for incomes above $150,000 (single) or $300,000 (married). FICA and state income taxes still apply to the full gross earnings.
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