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PayrollChecks

Overtime calculator

Enter your hourly rate and hours. We’ll show regular pay, overtime pay and the overtime premium that may be deductible.

Weekly pay with overtime

$0

Overtime rate$0
Overtime pay / week$0
Overtime pay / year$0
Annual gross pay$0
Premium portion / year$0
Est. deductible (2026)$0

Only the “half” in time-and-a-half (the premium above your regular rate) required by the Fair Labor Standards Act counts toward the federal overtime deduction for 2025-2028: up to $12,500 ($25,000 married filing jointly), reduced above $150,000 ($300,000) of income. Double-time premiums beyond what the FLSA requires and state-only overtime may not qualify. Estimate only; not tax advice.

Enter your regular hourly rate, regular and overtime hours. You’ll see your overtime rate, weekly and yearly overtime pay, and an estimate of the federal overtime deduction available for tax years 2025-2028.

How overtime pay works

Under the federal Fair Labor Standards Act (FLSA), most hourly (non-exempt) employees must be paid at least 1.5× their regular rate for hours over 40 in a workweek. Some states go further: California, for example, requires daily overtime after 8 hours and double time after 12.

Example: $25/hour × 1.5 = $37.50 per overtime hour. Ten overtime hours add $375 to the week.

The federal overtime deduction (2025-2028)

The 2025 tax law created a deduction for qualified overtime compensation: the premium portion (the “half” in time-and-a-half) required by the FLSA:

Single / head of household Married filing jointly
Maximum deduction per year $12,500 $25,000
Phase-out begins (modified AGI) $150,000 $300,000

It reduces federal income tax only (not Social Security, Medicare or (in most cases) state tax) and you claim it when you file. Married couples must file jointly to claim it. Read the full guide: no tax on overtime.

Frequently asked questions

Is overtime taxed more?

No. Overtime is taxed at the same rates as regular pay. A bigger paycheck can look more heavily taxed because withholding tables treat it as if you earned that much every period.

Is double time deductible?

Only the overtime premium required by the FLSA (generally the half-time premium over 40 hours) qualifies. Extra premiums required only by state law or contracts may not.