Overtime Pay Calculator
Official Sources & References
This calculator uses data from the following authoritative sources. All tax rates, brackets, and thresholds are verified against official government publications:
- IRS Tax Brackets 2025
- IRS W-4 Tax Withholding Estimator
- SSA 2025 Wage Base Limit
- US Dept. of Labor - Minimum Wage
- IRS Publication 15 (Employer's Tax Guide)
- FLSA Overtime Pay Requirements
- DOL Overtime Fact Sheet
- DOL 2025 Salary Threshold Rule
This calculator is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or the IRS for guidance specific to your situation.
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.
Overtime Pay Laws by State
While the federal Fair Labor Standards Act (FLSA) requires 1.5x overtime after 40 hours per week, some states have stricter rules:
| State | OT Threshold | Special Rules |
|---|---|---|
| Federal (FLSA) | 40 hrs/week | 1.5x regular rate |
| California | 8 hrs/day | 1.5x after 8 hrs/day; 2x after 12 hrs/day; 2x on 7th consecutive day |
| Alaska | 8 hrs/day | 1.5x after 8 hours per day |
| Colorado | 12 hrs/day | 1.5x after 12 hours per day or 40/week |
| Nevada | 8 hrs/day | 1.5x after 8 hours/day if pay rate < 1.5x minimum wage |
How Overtime Is Taxed
A common misconception is that overtime is "taxed more." In reality, overtime is taxed at the same marginal rate as regular income. The reason overtime paychecks feel more heavily taxed is because:
- Annualization: Your employer's payroll system annualizes each paycheck to estimate withholding. A paycheck with overtime appears to be a higher annual salary, so more is withheld.
- Progressive brackets: The extra overtime income may push part of your earnings into a higher bracket — but only the portion above the threshold, not all your income.
- FICA is flat: Social Security (6.2%) and Medicare (1.45%) apply equally to overtime at the same rates as regular pay.
If too much is withheld from overtime paychecks, you will get the difference back as a tax refund when you file your annual return.
Who Is Exempt from Overtime?
The FLSA exempts certain employees from overtime requirements. As of 2025, you are generally exempt if you meet ALL of these criteria:
- You earn a salary of at least $58,656/year ($1,128/week)
- Your primary duties are executive, administrative, professional, computer, or outside sales work
- You are paid on a salary basis (not hourly)
If you do not meet these criteria, your employer must pay overtime. Misclassification of employees as "exempt" is one of the most common wage violations in the US.
Weekly Overtime vs. Daily Overtime States
Most states follow the federal standard of weekly overtime (40+ hours per week), but a few states also require daily overtime:
- California: 1.5x after 8 hours/day AND 2x after 12 hours/day. Also requires 2x pay on the 7th consecutive workday.
- Alaska: 1.5x after 8 hours/day for employers with 4+ employees.
- Nevada: 1.5x after 8 hours/day if hourly rate is less than 1.5x minimum wage.
- Colorado: 1.5x after 12 hours/day or 40 hours/week, whichever triggers first.
In daily overtime states, you can earn overtime even if you work less than 40 hours in the week. For example, working four 10-hour days in California triggers 8 hours of overtime pay (2 hours per day at 1.5x), even though you only worked 40 total hours.