Overtime Pay Calculator

Time and a half is the regular rate times 1.5, and double time is the regular rate times 2. The last column shows what 10 overtime hours at time and a half add to a week.

A salary does not remove overtime. An employee is exempt only if paid a salary of at least $684 a week ($35,568 a year) and the job meets the executive, administrative, or professional duties test. Highly compensated employees need total pay of $107,432 and a lighter duties test. A 2024 DOL rule that raised these levels was vacated by a federal court in Texas in November 2024, and the DOL restored the 2019 figures in its regulations in 2026.

For a salaried non-exempt employee, the regular rate is the weekly salary divided by the hours the salary is meant to cover (29 CFR 778.113). Convert other pay periods first: monthly × 12 ÷ 52, semimonthly × 24 ÷ 52, biweekly ÷ 2. The DOL's example is a $350 salary for 35 hours: $10 an hour, with $10 for each hour up to 40 and $15 after, so 45 hours pays $475.00.

Under the fluctuating workweek method (29 CFR 778.114), the salary is fixed whatever the hours and already pays straight time for all of them. The regular rate is the salary divided by the hours worked that week, and the employer adds half of it for each hour over 40. A $600 salary for a 50-hour week is $12 an hour, plus 10 × $6 = $60, or $660.00. The longer the week, the lower the rate, so the salary must still work out to at least the minimum wage. California law requires the regular rate to be 1/40 of the weekly salary (Labor Code § 515(d)), and Pennsylvania's Supreme Court rejected the half-time method in 2019, so neither state allows it.

The regular rate includes all pay for employment except items the FLSA excludes. Shift differentials, commissions, and nondiscretionary bonuses (production, attendance, quality, retention, or any bonus announced in advance) are included. Discretionary bonuses, holiday gifts, expense reimbursements, pay for time off, and premiums of at least 1.5x for weekend or holiday work are excluded.

Add the extras to straight-time pay and divide by all hours worked. The DOL's example (29 CFR 778.110): $12 an hour for 46 hours plus a $46 production bonus is ($552 + $46) ÷ 46 = $13 an hour. Overtime is $19.50, not $18, so the week pays $637.00 instead of $588. A bonus earned over a month or a quarter is spread back over the weeks it covers; when it cannot be tied to specific weeks, an equal share per week is reasonable (29 CFR 778.209).

When one employee works two jobs at different rates in the same week, the regular rate is the weighted average (29 CFR 778.115). Thirty-two hours at $11 and 10 hours at $9 is $442 ÷ 42 = $10.52 an hour, so the 2 overtime hours add half of that each, for $452.52 in total.

State law can add overtime on top of the federal rule. Four states pay overtime after a set number of hours in a day. The calculator above handles Alaska, Colorado, and Nevada; California has its own calculator because it also requires double time. When daily and weekly overtime overlap, an hour is paid once, at the higher rate.

Most other states follow the federal 40-hour week. A few set their own coverage, exemptions, or thresholds, so check your state labor department if you work for a small employer or in a job the FLSA exempts.

Overtime pay is taxable wages. For tax years 2025 through 2028, eligible workers can deduct qualified overtime compensation: only the FLSA-required premium above the regular rate, the "half" of time and a half, per the IRS. In the $20 × 45 hours example, overtime pay is $150 but the qualified amount is 5 × $10 = $50.00. Double time on hours over 40, state daily overtime, and union premiums above the FLSA minimum do not count, and neither does overtime paid to exempt employees.

The deduction is capped at $12,500 ($25,000 on a joint return) and shrinks by $100 for each $1,000 of modified AGI above $150,000 ($300,000 joint). It reduces federal income tax only; Social Security and Medicare apply to every overtime dollar. Employers report the qualified amount in box 12 of the 2026 Form W-2 with code TT. To see what the deduction saves, use the overtime tax calculator; the No Tax on Overtime guide covers who qualifies.