Overtime Pay Calculator: How Much Is Time and a Half?
Enter your hourly rate and overtime hours to calculate your overtime pay instantly. This calculator also shows how much of that overtime is now tax deductible under the new law.
Hours worked beyond 40 in a week, or total OT hours for the period you want to calculate.
What is overtime pay?
Overtime pay is the extra compensation you earn for working more than 40 hours in a workweek. Under the Fair Labor Standards Act, most hourly employees must be paid at least 1.5 times their regular hourly rate for every hour beyond 40. This is called time and a half. If your regular rate is $20 an hour, your overtime rate is $30 an hour.
How to calculate overtime pay
The formula is simple. Take your regular hourly rate, multiply it by 1.5, and multiply that by the number of overtime hours you worked. For example, at $25 an hour with 10 overtime hours: $25 times 1.5 equals $37.50 per overtime hour, times 10 hours equals $375 in overtime pay.
Your total paycheck for that week would be your regular pay for 40 hours ($1,000) plus the overtime pay ($375), totaling $1,375.
How much is overtime pay per hour?
| Regular rate | Overtime rate (1.5x) | Premium (the extra 0.5x) |
|---|---|---|
| $15.00 | $22.50 | $7.50 |
| $20.00 | $30.00 | $10.00 |
| $25.00 | $37.50 | $12.50 |
| $30.00 | $45.00 | $15.00 |
| $35.00 | $52.50 | $17.50 |
| $40.00 | $60.00 | $20.00 |
| $50.00 | $75.00 | $25.00 |
The new overtime tax deduction
Starting in 2025, the premium half of your overtime pay (the extra 0.5x above your regular rate) is deductible from your federal income tax. That is the rightmost column in the table above. The cap is $12,500 per year, or $25,000 for married couples. You still earn and keep the full overtime pay. The deduction just means you pay less income tax on it when you file.
For a detailed breakdown of the tax savings, use the overtime deduction calculator which factors in your tax bracket and income phase outs.
Do salaried employees get overtime pay?
It depends on whether you are classified as exempt or non-exempt under the FLSA. Non-exempt salaried employees do get overtime pay. Exempt salaried employees, typically managers, professionals, and administrative workers earning above the salary threshold, do not. The 2026 salary threshold for overtime exemption is $58,656 per year. If you are salaried below that amount you are likely non-exempt and entitled to overtime.
Does holiday pay count towards overtime?
Under federal law, no. The FLSA does not require employers to count holiday pay, vacation pay, or sick pay toward the 40 hour overtime threshold. Only hours actually worked count. If you worked 32 hours and got 8 hours of holiday pay, your total check shows 40 hours but the FLSA says you only worked 32, so no overtime is triggered. Some state laws and union contracts have different rules, so check your specific situation.
Frequently asked questions
What is time and a half?
Time and a half means 1.5 times your regular hourly rate. If you earn $20 an hour, time and a half is $30. Federal law requires this rate for hours worked beyond 40 in a workweek for non-exempt employees.
How much is overtime pay?
Overtime pay is your regular hourly rate multiplied by 1.5, multiplied by the number of overtime hours worked. At $25 an hour with 10 overtime hours, your overtime pay is $375.
Do salaried employees get overtime?
Only non-exempt salaried employees. If you earn below the FLSA salary threshold of $58,656 per year in 2026, you are likely non-exempt and entitled to overtime pay. Exempt employees such as managers and professionals do not receive overtime.
Does holiday pay count towards overtime?
Under federal law, no. Only hours actually worked count toward the 40 hour overtime threshold. Holiday pay, vacation pay, and sick pay do not count unless your state law or union contract says otherwise.
Is overtime pay taxed differently?
Overtime is taxed as regular income but withholding on overtime checks often looks higher because your employer calculates withholding as if the check were annualized. You get the excess back when you file. Under the new law, the premium half of overtime is now deductible up to $12,500 per year. See is overtime tax free in 2026 for the full breakdown.