💰 Overtime Pay Calculator — Calculate OT Pay & Tax Deduction
Calculate overtime pay, total earnings, and annual projections — FLSA federal & state rules
✓ Time-and-a-Half ✓ Double Time ✓ No Tax on OT 2025 ✓ State RulesThe “One Big Beautiful Bill” proposes a federal deduction for qualified overtime compensation earned by non-exempt FLSA employees. As of mid-2025, this bill has passed the House and is under Senate review. The IRS has not yet issued final implementation guidance. Use this calculator to estimate your potential tax deduction — actual amounts depend on final legislation and your tax situation.
🌴 California
Daily OT: 1.5× after 8 hrs/day. Double time (2×) after 12 hrs/day. Double time on 7th consecutive workday (first 8 hrs). Weekly OT: 1.5× after 40 hrs. Salary threshold: $66,560/year (2025).
🏔️ Alaska
Daily OT: 1.5× after 8 hrs/day. Weekly OT: 1.5× after 40 hrs/week. Both daily and weekly rules apply — whichever produces more overtime.
🎰 Nevada
Daily OT: 1.5× after 8 hrs/day (if hourly rate is below 1.5× Nevada minimum wage). Weekly OT: 1.5× after 40 hrs/week. Employees earning above 1.5× state minimum wage are not subject to daily OT.
🌵 Colorado
Daily OT: 1.5× after 12 hrs/day. Weekly OT: 1.5× after 40 hrs/week. OT also applies for working more than 12 consecutive hours regardless of day boundary.
📜 Other States
Most other states (New York, Texas, Florida, Illinois, etc.) follow federal FLSA rules — 1.5× after 40 hrs/week, no daily overtime requirement. Always verify current rules with your State Department of Labor.
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Our free overtime pay calculator instantly calculates your time-and-a-half earnings, total weekly gross pay, annual overtime projections, and — new for 2025 — estimates your potential no tax on overtime deduction under the proposed “One Big Beautiful Bill” legislation. Whether you’re an hourly worker calculating OT for a single week, a salaried non-exempt employee verifying your paycheck, or a payroll manager applying FLSA and state-specific rules, this overtime calculator handles all scenarios with one click.
The calculator supports federal FLSA overtime rules, California daily overtime (1.5× after 8 hours, 2× after 12 hours), Alaska and Nevada state rules, and custom overtime multipliers. The Weekly Schedule Builder lets you enter each day’s hours separately — perfect for shift workers with irregular schedules. All results include a detailed breakdown of regular pay, overtime pay, and annual earnings.
How to Calculate Overtime Pay — The Formula
Under the Fair Labor Standards Act (FLSA), overtime pay is calculated at a minimum of 1.5 times the employee’s regular rate of pay for all hours worked over 40 in a single workweek. The federal overtime calculation formula is straightforward:
Overtime Pay Formula (Federal FLSA):
Regular Pay = Hourly Rate × Regular Hours (up to 40)OT
Rate = Hourly Rate × 1.5 (time-and-a-half)OT
Pay = OT Rate × Overtime Hours
Total Pay = Regular Pay + OT Pay
Example: An employee earns $20/hour and works 50 hours in one week. Regular pay = $20 × 40 = $800. Overtime rate = $20 × 1.5 = $30/hour. Overtime pay = $30 × 10 hours = $300. Total weekly gross pay = $800 + $300 = $1,100.
How Is Overtime Calculated for Salaried Employees?
Many people assume salaried employees are automatically exempt from overtime — but that is not true under the FLSA. Salaried non-exempt employees are entitled to overtime pay if they earn less than $684 per week ($35,568 per year) and perform non-exempt job duties. Their regular rate of pay is calculated by dividing their weekly salary by the number of hours they are expected to work in a week.
Salaried Employee OT Formula:
Regular Rate = Weekly Salary ÷ Regular Hours per Week
OT Rate = Regular Rate × 1.5
OT Pay = OT Rate × Overtime Hours Worked
Example: A non-exempt employee earns $800/week based on a 40-hour workweek ($20/hour regular rate). They work 48 hours. OT pay = $30 × 8 hours = $240. Total weekly pay = $800 + $240 = $1,040. Use the Salaried Employee option in Tab 1 of the calculator above to compute this automatically.
How to Calculate Overtime for Taxes (2025)
Overtime wages are taxed at the same federal income tax rates as regular wages — there is no special overtime tax rate. However, because overtime increases your total annual income, it may push part of your earnings into a higher marginal tax bracket, resulting in more total tax withheld from your paychecks.
2025 Update — No Tax on Overtime Proposal: The “One Big Beautiful Bill” (passed House in 2025) proposes a federal income tax deduction for “qualified overtime compensation” — specifically the overtime premium portion (the extra 0.5× above regular rate). If enacted, non-exempt FLSA workers earning overtime could deduct up to $12,500 (single) or $25,000 (married filing jointly) from their federal taxable income. Use Tab 3 of our calculator above to estimate your potential deduction.
How to Calculate the No Tax on Overtime Deduction
The proposed qualified overtime deduction works on the premium portion only — not the full 1.5× rate. Here is how it is calculated:
- Your regular rate is $20/hour. Your OT rate is $30/hour (1.5×)
- The overtime premium is $10/hour (the extra 0.5× portion — the deductible part)
- If you work 10 hours of overtime per week for 52 weeks: premium = $10 × 10 × 52 = $5,200
- At a 22% federal bracket: estimated tax savings = $5,200 × 22% = $1,144
The “No Tax on OT 2025” tab in the calculator above handles this calculation automatically, including the proposed income caps.
How Is Overtime Calculated in California?
California has some of the strictest overtime pay rules in the United States. Unlike the federal FLSA, California applies overtime on a daily basis in addition to the weekly threshold. The California overtime rules are:
| Situation | OT Rate | When It Applies |
|---|---|---|
| Daily overtime (standard) | 1.5× | Over 8 hours/day |
| Daily double time | 2.0× | Over 12 hours/day |
| Weekly overtime | 1.5× | Over 40 hours/week |
| 7th consecutive workday (first 8 hrs) | 1.5× | 7th day in a row |
| 7th consecutive workday (over 8 hrs) | 2.0× | 7th day in a row |
Use the California Overtime Calculator (Weekly Schedule Builder → select “California” rule) to calculate your exact OT pay under CA rules. The calculator applies daily and weekly thresholds simultaneously and takes whichever produces the higher overtime amount.
California vs. Federal Overtime — Key Differences
The most important difference between California and federal overtime is the daily overtime trigger. Under federal FLSA, you only earn overtime after working more than 40 hours in a week — no matter how many hours you work in a single day. California non-exempt employees earn overtime after 8 hours in any single day, regardless of their weekly total. This makes California overtime pay substantially higher for workers with long shifts.
Overtime Pay Calculator — Common Scenarios
| Scenario | Regular Pay | OT Pay | Total Weekly |
|---|---|---|---|
| $18/hr · 45 hrs worked | $720 | $135 | $855 |
| $20/hr · 50 hrs worked | $800 | $300 | $1,100 |
| $25/hr · 48 hrs worked | $1,000 | $300 | $1,300 |
| $30/hr · 60 hrs worked | $1,200 | $900 | $2,100 |
| $15/hr · 44 hrs (CA daily OT 9hrs/day) | $540 | $67.50 | $607.50 |
Frequently Asked Questions — Overtime Calculator
Conclusion
Our overtime pay calculator covers everything from a simple time-and-a-half calculation to California daily overtime rules, salaried non-exempt employee OT, weighted average overtime with bonuses, and the proposed 2025 no-tax-on-overtime deduction. Whether you need to verify a single paycheck, project your annual overtime earnings, or estimate your potential tax savings under the One Big Beautiful Bill, all four tools are available above — free, instant, and no sign-up required. Always verify your results against your employer’s payroll records and consult a tax professional for your final overtime tax deduction.