Paycheck Tool

Overtime Pay Calculator

Estimate your earnings and tax deductions on overtime hours. Input your hourly rate, regular hours, and overtime hours to calculate how much extra cash you take home after progressive taxes.

Pay stub Details

Hourly Rate ($)

Pay Schedule

Regular Hours per Cycle

1.5x Hours (Time & Half)

2.0x Hours (Double Time)

Filing Status

State (Tax Location)

Calculated Overtime Pay

Period: weekly

Gross Overtime Earnings

$750.00

Net Take-Home Overtime

$531.81

Category	Regular pay	Overtime pay	Total pay
Gross Wages	$1,200.00	$750.00	$1,950.00
Est. Tax Withholdings	$194.06	$218.19	$412.25
Net Take-Home	$1,005.94	$531.81	$1,537.75

Due to the progressive nature of federal income taxes, your overtime earnings are taxed at your highest **marginal tax bracket**. While your regular hourly pay has an effective tax rate of approximately 16.2%, your overtime hours are taxed at an effective rate of **29.1%**.

How Overtime pay is Calculated & Taxed

FLSA Overtime Laws (Time and a Half)

Under the Fair Labor Standards Act (FLSA), non-exempt employees in the United States must receive overtime pay for hours worked over 40 in a workweek. The statutory overtime rate is **1.5 times** the employee's regular hourly wage rate (commonly called "time-and-a-half").

Some employers also pay double-time (**2.0 times** the regular rate) for work performed on holidays, Sundays, or after working a set number of consecutive overtime hours in a single shift.

The Overtime "Tax Penalty" Myth

A common misconception among workers is that overtime pay is taxed at a special high rate, or that working overtime can "push you into a higher bracket" and actually reduce your total net take-home pay.

While it is true that your overtime hours are taxed at your highest marginal tax rate (since they represent additional incremental earnings), progressive tax brackets only apply to the portion of income that falls within that bracket. Working more hours will **always** result in higher net cash take-home pay.