Overtime Pay Calculator 2026: Gross and Take-Home

This week, line by line

Gross pay$1,144.00

Take-home pay$961.12

The federal overtime deduction

If this overtime is required by the Fair Labor Standards Act, the premium part ($88.00 this week, the extra half of your rate) may be deductible on your 2026 return. At this pace that is about $4,576 a year, worth roughly $549 in federal income tax at your 12% bracket. It does not lower Social Security, Medicare or most state taxes, and your employer still withholds normally. How the deduction works.

What each extra shift is worth

$22 an hour, 40 regular hours, single filer in Texas, time and a half. The last column is the take-home you gain from overtime that week.

Weekly pay with different amounts of overtime
Overtime hours	Gross	Take-home	Added by overtime
0	$880.00	$749.00	–
5	$1,045.00	$881.58	+$132.58
10	$1,210.00	$1,014.15	+$265.15
15	$1,375.00	$1,137.12	+$388.12
20	$1,540.00	$1,253.20	+$504.20

Who gets overtime

Most hourly workers are non-exempt and must get overtime. Salaried workers can be exempt if they meet duties tests and earn at least the federal salary threshold; many states set higher thresholds. Tipped, commissioned and public-sector workers have special rules.

Daily overtime applies in a few states: California (over 8 hours a day, double time over 12), Alaska (over 8), Nevada (over 8 for workers earning under 1.5 times the minimum wage) and Colorado (over 12).

Overtime and taxes

Overtime is ordinary wages for withholding, Social Security and Medicare. The federal overtime deduction applies on your tax return to the premium portion of FLSA-required overtime only, so for time and a half at $22, $11 of each $33 overtime hour counts. Overtime required only by state law or a union contract may not qualify.

Read the full overtime deduction guide.

Overtime questions

How is overtime pay calculated?

Multiply your regular rate by 1.5 for each overtime hour (or by 2 for double time). At $22 an hour, an overtime hour pays $33. Federal law requires overtime for hours over 40 in a workweek for non-exempt employees.

Is overtime taxed at a higher rate?

Overtime is taxed like any other wages, but payroll withholds on each check as if it were a typical week, so a big overtime week is withheld at a higher rate. Any excess is refunded when you file if your yearly income is lower.

Is there no tax on overtime in 2026?

For 2025 through 2028, eligible workers can deduct the premium part of FLSA-required overtime (the extra half in time-and-a-half), up to $12,500 a year ($25,000 joint), phasing out above $150,000 of income ($300,000 joint). It reduces federal income tax on your return, not Social Security, Medicare or most state taxes, and paychecks are still withheld normally.

Can I lower withholding on my overtime?

Yes, if you expect to claim the overtime deduction you can add the expected amount to Step 4(b) of your W-4 so less federal tax is withheld during the year. Only do this for overtime you are confident qualifies.