Overtime Calculator 2026

Overtime at 1.5× sounds like a big raise — until the IRS takes its share. At a $25/hr base rate, you keep roughly 70 cents of every overtime dollar after federal income tax and FICA. This calculator shows your real after-tax overtime pay, not just the gross number on your offer.

Federal law · Fair Labor Standards Act

FLSA Overtime Rules — What You Need to Know

1.5× Rate

After 40 hours in a single workweek, your employer must pay at least 1.5 times your regular hourly rate for every additional hour worked. Some states (e.g. California) require daily overtime after 8 hours.

Who Qualifies

Non-exempt hourly workers automatically qualify. Salaried employees earning under $684 per week ($35,568/year) also qualify for overtime regardless of job title or duties.

Who Doesn't

Exempt employees — executives, administrators, professionals, and some computer workers — are not covered. Independent contractors are also exempt, as overtime is an employment law protection.

After-tax breakdown per overtime hour

Is Overtime Actually Worth It?

Your overtime hour earns 1.5× gross — but taxes are calculated on your full marginal rate, not an average. Enter your hourly rate to see what you actually keep.

Overtime earnings reference

Weekly Overtime Earnings by Hourly Rate

Gross overtime pay for common hourly rates and overtime hours per week, annualized to 50 working weeks.

OT hrs/week	$15/hr	$20/hr	$25/hr	$30/hr	$40/hr
1 hr	$22.50/wk$1125.00/yr	$30.00/wk$1500.00/yr	$37.50/wk$1875.00/yr	$45.00/wk$2250.00/yr	$60.00/wk$3000.00/yr
2 hrs	$45.00/wk$2250.00/yr	$60.00/wk$3000.00/yr	$75.00/wk$3750.00/yr	$90.00/wk$4500.00/yr	$120.00/wk$6000.00/yr
4 hrs	$90.00/wk$4500.00/yr	$120.00/wk$6000.00/yr	$150.00/wk$7500.00/yr	$180.00/wk$9000.00/yr	$240.00/wk$12000.00/yr
8 hrs	$180.00/wk$9000.00/yr	$240.00/wk$12000.00/yr	$300.00/wk$15000.00/yr	$360.00/wk$18000.00/yr	$480.00/wk$24000.00/yr
10 hrs	$225.00/wk$11250.00/yr	$300.00/wk$15000.00/yr	$375.00/wk$18750.00/yr	$450.00/wk$22500.00/yr	$600.00/wk$30000.00/yr

Annual figures assume 50 paid overtime weeks per year.

Frequently Asked Questions

How is overtime calculated? ▾

Under the FLSA, overtime pay is at least 1.5 times your regular hourly rate for all hours worked beyond 40 in a single workweek. Some states have additional daily overtime rules — California, for example, requires 1.5× after 8 hours in a single day. Your workweek is a fixed, recurring 168-hour period; hours don't carry over from week to week.

Are overtime earnings taxed at a higher rate? ▾

Overtime itself isn't taxed at a special rate — it's ordinary income. However, because overtime pushes your total earnings higher, it may move some income into the next federal tax bracket. Only the dollars in the higher bracket are taxed at the higher rate; the rest of your income stays in its original bracket.

Does my employer have to pay overtime? ▾

If you are a non-exempt employee under the FLSA, yes — your employer is legally required to pay overtime for hours over 40 per week. Exempt employees (executive, administrative, and professional roles earning over $35,568/year) are not entitled to overtime. Your classification depends on your actual duties and salary, not just your job title.

Is overtime included in my annual salary for tax purposes? ▾

Yes. Overtime wages are added to your total W-2 wages and taxed as ordinary income on your federal and state tax return. When your employer withholds taxes from your paycheck, they typically use your annualized wages to estimate your bracket — so OT paychecks can have higher withholding. You'll reconcile the exact amount when you file.

Can I refuse overtime? ▾

The FLSA does not prohibit employers from requiring mandatory overtime — employees can be required to work more than 40 hours per week or face disciplinary action, including termination (in at-will employment states). Some states and union contracts provide additional protections, but federal law itself does not give employees the right to refuse overtime.

All 51 states — 2026 brackets

How does your state rank?

#StateTake-home vs bestAnnual

1Alaska 0%$65,110 2Florida 0%$65,110 3Nevada 0%$65,110 4New Hampshire 0%$65,110 5South Dakota 0%$65,110 6Tennessee 0%$65,110 7Texas 0%$65,110 8Washington 0%$65,110 9Wyoming 0%$65,110 10North Dakota $64,809 11Missouri $63,832 12Ohio $63,626 13Arizona $63,319 14Louisiana $63,096 15Indiana $62,750 16Iowa $62,682 17Pennsylvania $62,654 18Rhode Island $62,530 19New Mexico $62,516 20Kentucky $62,428 21North Carolina $62,427 22Colorado $62,298 23Wisconsin $62,213 24Arkansas $62,174 25Nebraska $62,174 26New Jersey $62,139 27West Virginia $62,093 28Oklahoma $62,011 29Mississippi $62,002 30Montana $61,951 31Vermont $61,940 32Idaho $61,723 33Michigan $61,710 34Georgia $61,581 35Maryland $61,522 36Utah $61,510 37South Carolina $61,467 38Connecticut $61,460 39New York $61,387 40Alabama $61,300 41District of Columbia $61,279 42Virginia $61,271 43Minnesota $61,193 44Illinois $61,150 45Kansas $61,137 46Massachusetts $61,110 47Delaware $61,061 48California $60,867 49Maine $60,507 50Hawaii $60,473 51Oregon $58,684