How is overtime pay calculated?
Overtime pay is your regular hourly rate multiplied by 1.5 for every hour worked over 40 in a workweek. The formula is overtime pay = (hours over 40) × (hourly rate × 1.5). At $20 an hour, time and a half is $30, so working 45 hours earns 5 × $30 = $150 in overtime on top of $800 in regular pay — $950 gross for the week. The federal rule comes from the Fair Labor Standards Act (FLSA), enforced by the U.S. Department of Labor.
What does “time and a half” mean?
Time and a half means 1.5 times your regular rate. It is the federal minimum for overtime — an employer can pay more, but not less. “Double time” is 2 times your rate; it is not required by federal law but is common in some union contracts and for holidays. This calculator defaults to 1.5× and lets you switch to 2× or enter a custom multiplier.
Who qualifies for overtime?
Most hourly (“non-exempt”) workers qualify. Salaried employees are exempt from overtime only if they earn at least the federal salary threshold of $684 per week ($35,568 per year) and their job duties meet the executive, administrative, or professional test. Earning above that salary alone does not remove overtime rights — the duties test must also be met. See the Department of Labor salary-level rules. Some states (such as California) add daily overtime after 8 hours in a day and double time after 12 — always check your state’s rules.
Is overtime tax-free under the new 2025 law?
Partly. The One Big Beautiful Bill Act created a federal income-tax deduction for overtime, in effect for tax years 2025 through 2028. It does not make overtime fully tax-free: only the premium portion — the extra half above your regular rate that the FLSA requires — is deductible, not the whole overtime check. At $20 an hour your overtime rate is $30, but only the $10 premium per hour counts. The deduction is capped at $12,500 ($25,000 for joint filers) and phases out above $150,000 of income ($300,000 joint). Social Security and Medicare taxes still apply, and you claim it on your tax return — so the gross pay shown above does not change. See the IRS overtime-deduction guidance.
How to calculate overtime pay by hand
- 1
Find your overtime rate. Multiply your regular hourly rate by 1.5. At $20/hour, time and a half is $20 × 1.5 = $30 per overtime hour.
- 2
Count the hours over 40. Subtract 40 from the hours you worked in the workweek. Working 45 hours gives 5 overtime hours.
- 3
Multiply overtime hours by the overtime rate. That is your overtime pay. 5 overtime hours × $30 = $150.
- 4
Add it to your regular 40-hour pay. Regular pay is 40 × $20 = $800, so total gross pay is $800 + $150 = $950 for the week.
Overtime pay reference tables
Quick references for overtime rates by wage, weekly pay as hours rise, the federal FLSA rules, and the 2025–2028 overtime tax deduction.
Overtime hourly rate by pay rate
Time and a half (1.5×) and double time (2×) per overtime hour at common wages. Federal law requires at least time and a half.
| Hourly rate | Time and a half (1.5×) | Double time (2×) |
|---|---|---|
| $12.00 | $18.00 | $24.00 |
| $15.00 | $22.50 | $30.00 |
| $16.00 | $24.00 | $32.00 |
| $18.00 | $27.00 | $36.00 |
| $20.00 | $30.00 | $40.00 |
| $22.00 | $33.00 | $44.00 |
| $25.00 | $37.50 | $50.00 |
| $28.00 | $42.00 | $56.00 |
| $30.00 | $45.00 | $60.00 |
| $35.00 | $52.50 | $70.00 |
| $40.00 | $60.00 | $80.00 |
| $50.00 | $75.00 | $100.00 |
Source: Socko calculation: hourly rate × multiplier.
Weekly gross pay by hours worked (at $20/hour)
Total gross pay for a week as hours rise above 40, paid at time and a half. Scale by your rate ÷ 20 for any wage.
| Hours worked | Overtime hours | Overtime pay | Gross weekly pay |
|---|---|---|---|
| 40 hrs | 0 | $0.00 | $800.00 |
| 42 hrs | 2 | $60.00 | $860.00 |
| 45 hrs | 5 | $150.00 | $950.00 |
| 48 hrs | 8 | $240.00 | $1040.00 |
| 50 hrs | 10 | $300.00 | $1100.00 |
| 55 hrs | 15 | $450.00 | $1250.00 |
| 60 hrs | 20 | $600.00 | $1400.00 |
Source: Socko calculation: 40 hrs at $20 + extra hours at $30 (1.5×).
Federal overtime rules at a glance (FLSA)
The Fair Labor Standards Act sets the federal floor. States may require more (such as daily overtime), never less.
| Rule | Federal standard |
|---|---|
| Overtime threshold | Hours over 40 in a single workweek |
| Minimum overtime rate | 1.5× the regular rate (“time and a half”) |
| Double time (2×) | Not required federally — state law or contract only |
| Salaried exempt threshold | $684/week ($35,568/year) plus a duties test |
| Highly compensated employee | $107,432/year total compensation |
The 2025–2028 “no tax on overtime” deduction at a glance
The One Big Beautiful Bill Act lets eligible workers deduct the FLSA overtime premium on their federal return. It is an income-tax deduction, not a payroll-tax exemption.
| Rule | Detail |
|---|---|
| Tax years in effect | 2025 through 2028 |
| What is deductible | The FLSA premium only — the half above your regular rate |
| Maximum deduction | $12,500 ($25,000 for joint filers) |
| Income phase-out begins | $150,000 MAGI ($300,000 for joint filers) |
| Social Security & Medicare | Still withheld — this is an income-tax deduction only |
| Who qualifies | FLSA-covered, non-exempt workers with a valid SSN |
Source: IRS — One, Big, Beautiful Bill Act: tax deductions for working Americans
Frequently asked questions
How do I calculate time and a half?
Multiply your hourly rate by 1.5. At $20/hour, time and a half is $30 per overtime hour — then multiply by your hours over 40.
How much is overtime on $20 an hour?
$30 per overtime hour ($20 × 1.5). Ten overtime hours add $300 on top of your regular pay.
At what point does overtime start?
After 40 hours in one workweek. Hour 41 onward is paid at 1.5× your rate. A few states also require daily overtime.
Is overtime calculated daily or weekly?
Federal overtime is weekly (after 40 hours), regardless of daily hours. Some states — California, for one — add daily overtime after 8 hours.
Do salaried employees get overtime?
Sometimes. Salaried workers earning under $684/week ($35,568/year) are generally owed overtime. Above that, they are exempt only if their duties also qualify.
Is double time required by law?
No. Federal law requires only time and a half. Double time (2×) comes from state rules, union contracts, or company policy.
Is overtime taxed at a higher rate?
No — overtime is taxed at the same rates as any other wages. A larger check may withhold more for that period, but there is no special overtime tax rate.
Is there no tax on overtime in 2025?
Not entirely. For 2025–2028, eligible FLSA-covered workers can deduct the overtime premium (the extra half above the regular rate) on their federal return, up to $12,500 ($25,000 joint), phasing out above $150,000 of income. Payroll taxes still apply, and your gross pay does not change.
Is this overtime calculator free, and is my data saved?
Yes — it is free and runs entirely in your browser. Nothing you enter is sent or stored.
This tool is for estimation and education, not financial advice. See our methodology for how these figures are calculated and sourced.