Time and a half · double time
Overtime calculator
See what a week of overtime pays, under the federal 40-hour rule or California's daily rules, and how much the new federal overtime deduction is worth to you.
The rules
How overtime is calculated
Federal law (the Fair Labor Standards Act) counts hours by the workweek: any seven consecutive days your employer fixes in advance. Every hour past 40 in that week is paid at no less than one and a half times your regular rate. It does not matter how long any single day was, and hours do not carry over from one week to the next, so 30 hours one week and 50 the next means 10 overtime hours even though the two weeks average 40.
overtime=rate × 1.5 × hours over 40
week=rate × 40 + overtime
At $20 an hour, a 50-hour week is 40 × $20 = $800 plus 10 × $30 = $300, so $1,100. Notice that the 10 extra hours added 37.5% to the pay for 25% more time.
Your regular rate is not always your hourly rate
The 1.5 multiplies your regular rate, which includes shift differentials, production bonuses and most other pay tied to the work. If you earn $20 an hour plus a $50 weekly attendance bonus and work 50 hours, the regular rate is $1,050 ÷ 50 = $21 and each overtime hour owes an extra half of that, $10.50. Employers who pay overtime on the base rate only are a common source of back-pay claims. Shift differentials work the same way.
California and other daily rules
California pays time and a half for hours over 8 in a day and for the first 8 hours on the seventh consecutive day of the workweek, and double time past 12 hours in a day or past 8 on that seventh day. A 4 × 10-hour schedule therefore earns 8 overtime hours a week in California and none under federal law, unless the employer has a valid alternative workweek agreement. Switch to Day by day above and tick the California box to see the difference.
When the overtime gets cut
A cut in overtime costs more than the overtime premium: every extra hour goes, at time and a half. At $20 an hour, losing 8 overtime hours a week takes $240 out of each weekly check before taxes, about $12,000 over 50 weeks. That is why a new job with a higher hourly rate can still pay less if the old one came with steady overtime: compare the two with the hours you will really get. If the cut is permanent, the federal overtime deduction shrinks with it, since it only applies to overtime you actually earn.
No tax on overtime, 2025 to 2028
Since 2025, nonexempt workers can deduct the premium part of their overtime, the extra half in time and a half, on their federal return: up to $12,500 a year, or $25,000 for a married couple filing jointly, shrinking above $150,000 of income ($300,000 joint). It is a deduction, not an exemption, so it lowers taxable income rather than removing the tax on the whole overtime check, and Social Security and Medicare still apply.
Example: at $25 an hour with 5 overtime hours a week for 50 weeks, the premium is $25 × 0.5 × 250 = $3,125. For a single filer earning $59,375 that cuts federal income tax by about $375. State income taxes mostly do not follow it.
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Questions
Overtime pay, answered
How do you calculate time and a half?
Multiply your regular hourly rate by 1.5, then multiply by the overtime hours. At $20 an hour, time and a half is $30, so 10 overtime hours pay $300 on top of $800 for the first 40 hours.
When does overtime start?
Under federal law, after 40 hours in a workweek for nonexempt employees. A few states add daily rules: California pays 1.5 times after 8 hours in a day and double after 12, and Alaska and Nevada have daily overtime in some cases.
Is overtime taxed more?
No. Overtime is added to your pay and taxed at the same rates; the paycheck can look heavily taxed because withholding treats that bigger check as if every check were that size. From 2025 to 2028 the extra half of time and a half can also be deducted on your federal return, up to $12,500.
Do salaried employees get overtime?
Only if they are nonexempt. A salaried worker earning less than $684 a week ($35,568 a year), or one whose duties do not meet the executive, administrative or professional tests, is owed overtime like an hourly worker.