Working on holidays
How holiday pay works in the US (2026)
Unlike many countries, the United States has no federal law requiring private employers to pay a premium for holiday work. The Fair Labor Standards Act treats holidays like any other workday. However, most employers voluntarily offer holiday premium pay — typically time-and-a-half (1.5x) or double time (2x) — to attract employees willing to work on major holidays.
Common holiday premium rates
Time-and-a-half is the most common premium: if your base rate is $24/hour, you earn $36/hour on the holiday. Double time ($48/hour at a $24 base) is less common but often applies on major holidays like Christmas, Thanksgiving, or New Year's Day. Some employers also pay your regular day's wages as a "holiday bonus" on top of the worked hours, effectively creating triple pay.
| Base rate | 1.5x holiday (8 hrs) | 2x holiday (8 hrs) | Extra vs. regular day |
|---|---|---|---|
| $18.00 | $216 | $288 | $72 / $144 |
| $24.00 | $288 | $384 | $96 / $192 |
| $30.00 | $360 | $480 | $120 / $240 |
| $40.00 | $480 | $640 | $160 / $320 |
Gross holiday pay for an 8-hour shift. "Extra" = amount above what a regular 8-hour shift would have paid.
2026 federal holidays
There are 11 federal holidays in 2026. Federal employees receive these as paid days off. Private-sector workers receive an average of 8 paid holidays per year (BLS), though the specific days and premium rates depend on employer policy. The busiest premium-pay holidays are typically Thanksgiving, Christmas Day, New Year's Day, and Independence Day.
Tax impact
Holiday premium pay is taxed exactly like regular wages — no special rate applies. The extra earnings increase your gross pay for that pay period, which may push you into a slightly higher withholding bracket for that particular paycheck. Your actual tax liability is reconciled at filing based on your full-year income. Use our paycheck calculator or overtime calculator for a broader view of your take-home.
Questions
Holiday pay calculator FAQ
How is holiday pay calculated in the US?
There is no federal law requiring holiday pay, so it depends on your employer's policy. When offered, holiday pay is typically 1.5 times (time-and-a-half) or 2 times (double time) your regular hourly rate for hours worked on a recognized holiday. If you earn $24/hour and work 8 hours on a holiday at time-and-a-half, your holiday pay is $24 times 1.5 times 8, which equals $288.
Is holiday pay required by law?
No. Under the Fair Labor Standards Act, employers are not required to pay a premium for work on holidays, weekends, or days of rest. Holiday pay is entirely voluntary in the private sector. However, many employers offer it as a benefit, and union contracts often guarantee it.
Do holiday hours count toward overtime?
Under the FLSA, only hours actually worked count toward the 40-hour overtime threshold. If you receive a paid holiday but do not work, those hours typically do not push you toward overtime. However, some employers voluntarily count paid holiday hours toward the overtime threshold — check your company policy.
How many paid holidays do US workers get?
The US has 11 federal holidays, but only federal employees are guaranteed those days off with pay. Private-sector workers average about 8 paid holidays per year according to the Bureau of Labor Statistics, though the number varies by employer and industry.
Is holiday pay taxed differently?
No. Holiday premium pay is taxed as regular wages. It is included in your gross pay and subject to normal federal income tax withholding, Social Security (6.2% up to the $184,500 wage base in 2026) and Medicare (1.45%). There is no special holiday-pay tax rate.
- Sources: U.S. DOL — FLSA holiday pay guidance (no federal mandate) · BLS Employee Benefits Survey (avg 8 paid holidays) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base $184,500.
- 🔄 Last updated July 25, 2026 · Tax year 2026
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