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Gross pay this week$1,040.00includes $240.00 of overtime pay
ItemHoursRatePay
Regular40$20.00$800.00
Overtime8$30.00$240.00
Gross pay48$1,040.00

Overtime premium required by federal law (the extra half, on hours over 40): $80.00. That is the part the federal overtime deduction for 2025–2028 is based on.

What's left after taxes?Run the same hours through federal and state tax.
Hourly paycheck calculator
How it works

How overtime pay is calculated

The calculator applies the federal rule in the Fair Labor Standards Act: hours past 40 in a workweek are overtime.

Split the hours

Hours up to the threshold are regular hours. Everything past it is overtime. The threshold is 40 unless your employer or contract starts overtime sooner.

Find the overtime rate

Time and a half is your hourly rate × 1.5; double time is × 2. At $20 an hour that is $30 or $40 for each overtime hour.

Add it up

Regular hours × your rate, plus overtime hours × the overtime rate, is gross pay for the week. For what's left after taxes, use the hourly paycheck calculator.

Example

Overtime at $20 an hour

A week's pay at time and a half, as the hours go up. On a pay stub, overtime appears as its own line with its own hours and rate — see what the codes on a pay stub mean.

Before taxes and deductions.
Hours workedOvertime hoursRegular payOvertime payGross pay
400$800.00$0.00$800.00
455$800.00$150.00$950.00
5010$800.00$300.00$1,100.00
5515$800.00$450.00$1,250.00
6020$800.00$600.00$1,400.00
FAQ

Common questions

How is overtime pay calculated?

Under the federal Fair Labor Standards Act, hours worked over 40 in a workweek are paid at no less than one and a half times your regular rate. At $20 an hour, 48 hours is 40 × $20 plus 8 × $30, or $1,040.

Is overtime figured by the week or by the pay period?

By the week. Each workweek stands on its own, so hours can't be averaged across a two-week pay period: 50 hours one week and 30 the next is 10 hours of overtime, even though the two weeks total 80.

Do I get overtime for working more than 8 hours in a day?

Not under federal law, which only counts hours over 40 in the week. Some states add daily overtime: California, for example, requires time and a half after 8 hours in a day and double time after 12. Check your state's rules.

Who doesn't get overtime?

Employees who are exempt under the Fair Labor Standards Act — most commonly executive, administrative and professional employees who are paid a salary and meet the law's duties and salary tests. Being paid a salary is not enough on its own to make someone exempt.

Is overtime taxed?

Yes. Overtime is taxed like any other wages, and Social Security and Medicare apply to all of it. For tax years 2025 through 2028 there is a federal income tax deduction for qualified overtime — the extra half on top of your regular rate — of up to $12,500, or $25,000 on a joint return, which phases out above $150,000 of income ($300,000 joint). It is claimed on your tax return.

What counts as my regular rate?

For most hourly workers it is the hourly rate. If you also earn shift differentials, non-discretionary bonuses or commissions, those are part of the regular rate and raise the overtime rate. This calculator uses the hourly rate you enter.

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