Overtime Pay Calculator
How Overtime Pay Works in the United States
Under the Fair Labor Standards Act (FLSA), most hourly and non-exempt salaried employees are entitled to overtime pay at 1.5 times their regular hourly rate for every hour worked beyond 40 in a single workweek.
For example, if your regular hourly rate is $25, your overtime rate is $37.50 per hour. Working 48 hours in a week means you earn 40 hours at $25 ($1,000) plus 8 hours at $37.50 ($300), for a total gross pay of $1,300 that week.
Who Qualifies for Overtime?
The FLSA exempts executive, administrative, and professional employees earning at least $58,656 per year (2025 threshold). If you are classified as non-exempt, your employer must pay overtime.
How Overtime Affects Your Taxes
Overtime pay is taxed the same as regular income — there is no special “overtime tax.” Higher gross pay may push withholding higher for that period, but your annual return will reconcile any over-withholding.