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Overtime pay calculator

Work out a week's pay with time and a half or double time, and estimate the federal "no tax on overtime" deduction and what it saves you.

By the Calcist team · Checked against known answers · Updated October 28, 2026

Private: calculated on your device. Nothing you type is sent anywhere.

Estimates for planning, not financial, tax or legal advice. Figures use US rules unless the page says otherwise.

Next: Adding up the week first? Use the time card calculator. See your full-year tax with the income tax calculator.

What it does

It works out a week's pay with time and a half (and double time, if you get it), then estimates the federal deduction for qualified overtime that runs from 2025 through 2028, often called "no tax on overtime".

How overtime pay is calculated

Under the Fair Labor Standards Act (FLSA), covered workers who aren't exempt must get at least time and one-half their regular rate for hours over 40 in a workweek. A workweek is a fixed, recurring 168-hour period (seven 24-hour days). Hours can't be averaged over two or more weeks, and the FLSA doesn't require extra pay for weekends, holidays or double time, though some states and contracts do.

Pay = rate × regular hours + rate × 1.5 × time-and-a-half hours + rate × 2 × double-time hours
Overtime hours = hours worked − 40

How the overtime deduction works

From 2025 through 2028 you can deduct "qualified overtime compensation" on your federal return, whether you itemize or take the standard deduction. Only the part of overtime pay that's above your regular rate counts: the "half" in time and a half, and only for overtime the FLSA requires.

Qualified overtime = ½ × regular rate × hours over 40 in a week
Deduction = smaller of qualified overtime or $12,500 ($25,000 married filing jointly), minus $100 for each full $1,000 of MAGI over $150,000 ($300,000 joint)
  • If you're paid double time, only the half-time part the FLSA requires counts. The extra is still taxed.
  • Overtime that only a state law or union contract requires, such as daily overtime, doesn't qualify.
  • Married couples must file jointly, and you need a valid Social Security number on the return.
  • It lowers federal income tax only. Overtime is still subject to Social Security and Medicare tax, and to any state income tax unless your state says otherwise.

Worked example

You earn $20 an hour and work 50 hours. Regular pay is $20 × 40 = $800. Time and a half is $30 an hour, so 10 hours are worth $300. The week pays $1,100.

The qualified part is ½ × $20 × 10 = $100 a week. Over 50 weeks that's $5,000, under the $12,500 cap. Your year's pay is about $1,100 × 50 + $800 × 2 = $56,600, under $150,000, so the full $5,000 is deductible. As a single filer, taxable income falls from $40,500 to $35,500, all in the 12% bracket, saving about $600 of federal income tax.

Limitations

  • Your FLSA regular rate includes most other pay for the week, such as shift differentials and nondiscretionary bonuses, which raises the overtime rate. Enter the regular rate if you know it.
  • Exempt employees (many salaried managers and professionals) aren't owed FLSA overtime, and their overtime pay doesn't qualify for the deduction.
  • The tax saved assumes the standard deduction and no other deductions or credits. It's an estimate, not your tax bill.
  • Your W-2 for 2026 and later should show qualified overtime separately. Use that number when you file.

Want your full paycheck with withholding? Use the take-home pay calculator or the paycheck calculator. Adding up a timesheet first? Try the time card calculator.

Sources

Figures last reviewed October 2026.

How we checked this

Before every update, this calculator is run in a real browser with these known answers, and it must match all of them:

  • $20/h, 50 hours: $800 + 10 × $30 = $1,100 ✓
  • Same with 2 double-time hours: $1,120 ✓
  • $25/h, 50 h × 50 weeks, single: $6,250 deduction saves $1,175 ✓
  • $20,000 of premium is capped at $12,500 (single) ✓
  • MAGI $180,000: $12,500 − $3,000 = $9,500 ✓
  • Joint, MAGI $320,500: $11,250 − $2,000 = $9,250 ✓
  • Married filing separately: no deduction ✓
  • 38 hours: no overtime, $760 ✓

Last checked October 26, 2026. Spotted something wrong? The math is done in your browser with the formula shown on this page, so you can check any result by hand.

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Questions people ask

How do I calculate overtime pay?

Multiply your regular rate by 1.5 for each hour over 40 in the workweek. At $20 an hour, 45 hours pays $20 × 40 + $30 × 5 = $950.

Is overtime tax free now?

Not entirely. From 2025 through 2028 you can deduct the extra half-time part of FLSA overtime, up to $12,500 ($25,000 joint), on your federal return. Social Security and Medicare still apply, and the deduction phases out over $150,000 of MAGI ($300,000 joint).

Does double time count for the overtime deduction?

Only the half-time part the FLSA requires. If you're paid $40 an hour on a $20 base, $10 of each overtime hour counts and the other $10 doesn't.

Do I get overtime for working over 8 hours in a day?

Not under federal law, which counts hours over 40 in a workweek. A few states and some union contracts require daily overtime, but that overtime doesn't qualify for the federal deduction.

Who can claim the no tax on overtime deduction?

Workers who are owed overtime under the FLSA (non-exempt employees) and receive it. You need a valid Social Security number on the return, and married couples must file jointly. Exempt employees, and overtime required only by state law or a contract, don't qualify.

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