Overtime calculator with taxes 2026
Enter your rate and your overtime hours. We show how much overtime adds to your paycheck and how much of it reaches you after taxes.
How overtime is calculated
Federal law requires at least 1.5 times your regular rate for every hour over 40 in a workweek. At $22 an hour, each overtime hour is worth $33.
It is counted per week, not per pay period: working 45 hours one week and 35 the next is 5 overtime hours, even though the biweekly total is 80.
Some states give more. California also pays 1.5× after 8 hours in a day, and double after 12.
Why it looks like more is taken
Overtime is added to your pay for the period and federal withholding is figured on the total. Because the system uses brackets, those extra dollars land in the highest bracket you reach and pay a higher percentage than your average.
In the example, your normal check keeps 85.1% of gross, but the overtime keeps only 80.3%.
What "no tax on overtime" means
From 2025 through 2028 you can deduct from federal income tax the extra half of your overtime: the $11 an hour in the example, not the full $33. The cap is $12,500 a year ($25,000 if married filing jointly), if your total income is under $150,000 ($300,000 if married).
It does not lower your paycheck automatically. The benefit comes when you file, unless you enter the deduction in Step 4(b) of your W-4 to get it in each paycheck.
Social Security and Medicare are still withheld from overtime, and your state may still tax it.
Frequently asked questions
Is working overtime worth it?
You always earn more: you never end up with less money for working extra hours. A smaller share of each extra dollar reaches you than from your normal pay, that is all.
How much is overtime in Texas or Florida?
The same as the federal rule: 1.5 times your rate after 40 hours a week. Those states add no rules of their own.
Is overtime tax-free now?
No. Federal income tax, Social Security and Medicare are still withheld from overtime on every paycheck. From 2025 through 2028 you can deduct the extra half of your overtime when you file your tax return, up to the cap: the benefit arrives as a smaller tax bill or a larger refund, not as a bigger paycheck.