Overtime & the FLSA
How overtime pay works in 2026
Overtime is one of the most valuable lines on an hourly paycheck — and one of the most misunderstood. Under the federal Fair Labor Standards Act (FLSA), most non-exempt employees must be paid at least 1.5 times their regular rate for every hour worked beyond 40 in a workweek. This calculator turns that rule into real dollars.
The time-and-a-half rule
"Time-and-a-half" simply means 1.5× your hourly wage. If you earn $22 an hour, each overtime hour pays $33. The premium applies to hours over 40 in a single workweek — not per day under federal law, though some states (like California) add daily overtime thresholds and double-time rules on top.
| Regular rate | OT rate (1.5×) | 10 OT hrs/wk extra |
|---|---|---|
| $18.00 | $27.00 | ~$270 |
| $22.00 | $33.00 | ~$330 |
| $30.00 | $45.00 | ~$450 |
| $40.00 | $60.00 | ~$600 |
Gross overtime premium per week at the time-and-a-half rate. Double-time (2×) pays even more.
From weekly overtime to annual earnings
Steady overtime adds up fast. Ten overtime hours a week at a $25 rate is $375 a week, or nearly $19,500 a year in extra gross pay — often the difference between two pay grades. The calculator annualizes your weekly total so you can see the full-year impact and plan around it.
Convert your total to take-home pay
This tool shows gross overtime and weekly pay. To see what actually lands in your bank account after federal tax, Social Security and Medicare, run your annualized figure through our paycheck calculator or gross-to-net calculator, and add state tax with your state page.
Questions
Overtime pay calculator FAQ
How is overtime pay calculated?
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees earn at least 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek. So if you earn $20 an hour, each overtime hour pays $30. This calculator multiplies your overtime hours by 1.5 times your rate and adds it to your regular pay.
What is time-and-a-half?
Time-and-a-half means 1.5 times your normal hourly wage, the standard federal overtime premium. For a $24/hour worker, time-and-a-half is $36 per overtime hour. Some states or employers pay double-time (2x) in certain situations, such as work on holidays or beyond a daily hour threshold.
Is overtime taxed differently?
Overtime pay is taxed at the same rates as regular wages — there is no special overtime tax. It can feel like more is withheld because the extra income may fall in a higher marginal bracket, but only the dollars above each threshold are taxed at the higher rate. Your take-home from overtime is still well above your base hourly rate.
Who qualifies for overtime pay?
Most hourly, non-exempt employees qualify for FLSA overtime after 40 hours in a workweek. Salaried employees who earn above the federal exempt threshold and perform certain executive, administrative or professional duties may be exempt. Check your classification with your employer or your state labor department.
- Sources: U.S. Department of Labor — Fair Labor Standards Act overtime rules (1.5× after 40 hrs/week) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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