Tax tools

Overtime Pay Calculator

Calculate your overtime pay at 1.5x your regular rate, plus gross pay breakdown and take-home after taxes.

Weekly pay breakdown

Regular pay$1,200.00
Overtime pay (1.5x)$450.00
Gross weekly$1,650.00

Overtime premium

OT rate (1.5x)$45.00/hr
Weekly OT premium$150.00
Annual OT premium$7,800

Annual take-home

Gross annual$85,800
Social Security (6.2%)-$10639.20
Medicare (1.45%)-$2488.20
Federal income tax-$10717.00
California tax-$3375.07
Total taxes-$27219.48
Net annual$58,580.52

Summary cards

Net weekly$1,126.55
Net biweekly$2,253.10
Net monthly$4,881.71
Effective rate31.7%

Worked example

At $30/hr with 40 regular + 10 OT hours/week in California, your gross is $1,650.00/week. You take home $1,126.55/week after taxes (effective rate 31.7%). The OT premium adds $150.00/wk ($7,800/yr before tax).

How overtime pay works

  • FLSA requirement: Non-exempt employees must receive 1.5x pay for hours over 40/week
  • Overtime rate: $30/hr × 1.5 = $45.00/hr
  • Weekly premium: The extra 0.5x on OT hours = $150.00/week
  • Not a separate tax: OT pay is taxed the same as regular income — the higher withholding is from more dollars, not a higher rate
  • Some states have daily OT: CA, CO, AK require OT after 8 hours/day, not just 40/week

Frequently asked questions

Is overtime taxed at a higher rate?

No. Overtime pay is taxed as ordinary income. The withholding may appear higher because there's more income, but the marginal tax rate is the same as regular pay.

What is the overtime premium?

The premium is the extra 0.5x (half your regular rate) paid for each overtime hour. For example, at $30/hr, the OT rate is $45/hr — the $15 premium is the extra 0.5x on top of the $30 base.

Does overtime apply to salaried employees?

Only "non-exempt" salaried employees (those earning below certain thresholds) are eligible for overtime. "Exempt" salaried employees (e.g., managers, professionals) generally don't qualify.

Can my employer require unlimited overtime?

Legally yes, but there are limits. Some states cap daily hours. In practice, employers should follow reasonable scheduling practices.