Quick answer
At $25 an hour, a 48-hour week pays $1,300: $1,000 of regular pay for 40 hours plus $300 for 8 overtime hours at time-and-a-half. The overtime premium, the extra half above straight time, is $100. Federal law requires 1.5 times the regular rate for hours over 40 in a week.
How the Overtime Calculator works, step by step
Enter your straight-time hourly rate, your regular hours and your overtime hours for the week. The calculator pays regular hours at the rate you enter and overtime hours at 1.5 times that rate, following the federal Fair Labor Standards Act rule for non-exempt workers: time-and-a-half for hours over 40 in a single workweek. The 40-hour count is per workweek, not per pay period.
The premium line shows the extra pay overtime earns above straight time: 0.5 times your rate for each overtime hour. That split matters for tax. Since 2025, the federal deduction for overtime covers only the premium portion, up to $12,500 a year for single filers or $25,000 joint, for tax years 2025 through 2028. It phases out above $150,000 of modified AGI single, $300,000 joint.
Double time is a separate input because federal law does not require it. Some states, union contracts and employer policies pay 2 times the rate for long days or holidays: California, for example, requires double time for hours past 12 in a day. Enter those hours in the double-time field so they are priced at 2 times your rate instead of 1.5.
Salaried workers are not automatically exempt. The federal exemption needs both a salary of at least $684 a week ($35,568 a year) and duties that qualify as executive, administrative or professional. Below that salary, the job cannot be exempt however senior the title sounds, and overtime is owed. The 2024 rule that would have raised the threshold was vacated by a federal court, and the $684 figure was formally restored in 2026.
This calculator works out gross overtime pay only: it does not subtract tax. Overtime is still fully taxable as wages, and withholding applies to it like any other pay. The deduction for the premium portion is claimed when you file your return, not through payroll, and from 2026 your employer reports it in Box 12 of your W-2 under code TT.
The formula
Regular pay = hourly rate times regular hours. Overtime pay = hourly rate times 1.5 times overtime hours. Double-time pay = hourly rate times 2 times double-time hours. Overtime premium = hourly rate times 0.5 times overtime hours. Total gross pay = regular pay plus overtime pay plus double-time pay.
Worked example — try it on the calculator above
Worked example: $25 an hour, 40 regular hours, 8 overtime hours
A worker earns $25 an hour and works 48 hours in a week: 40 regular hours and 8 overtime hours. Regular pay is $25 times 40, or $1,000. Overtime pays $37.50 an hour, so 8 overtime hours add $300. Total gross pay for the week is $1,300. The overtime premium is $12.50 an hour times 8 hours, or $100: that is the only part that qualifies for the federal overtime deduction. If 2 of those overtime hours had been double time instead, they would pay $100 rather than $75, and the weekly total would be $1,325. Over a full year at this pace, the premium alone would be $5,200, well inside the $12,500 annual deduction cap for single filers.
Frequently Asked Questions
Is overtime pay tax-free now?
No. Overtime is still fully taxable as wages, and your employer still withholds income tax, Social Security and Medicare from it. The 2025 law created a deduction for the premium portion only, the extra half in time-and-a-half, up to $12,500 a year single or $25,000 joint, for tax years 2025 through 2028. You claim it when you file.
Do I get overtime for working more than 8 hours in a day?
Not under federal law, which counts overtime only after 40 hours in a workweek. Some states add daily rules: California pays 1.5 times after 8 hours in a day and double time after 12. Check your state labor department if your state has a daily rule, because the federal weekly rule is only the floor.
Does the 40-hour rule count paid time off?
No. Federal overtime counts hours actually worked. Paid holidays, sick days and vacation do not count toward the 40 hours, so a week with a paid holiday and 36 hours worked owes no federal overtime. Your employer or contract may be more generous, but the law does not require it.
What is the federal minimum wage?
$7.25 an hour, unchanged since 2009. Many states and cities set higher minimums, and the higher rate applies where you work. Overtime is calculated on your regular rate, which must be at least the applicable minimum wage, and it includes non-discretionary bonuses and shift differentials.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.