Overtime Calculator

How It’s Calculated

Overtime Pay = Overtime Hours × Base Rate × 1.5 (or applicable multiplier)
After-Tax Value = Overtime Pay × (1 − marginal tax rate on that income)

Because overtime stacks on top of your regular pay, it is taxed at your highest marginal rate for the period, which trims the headline figure.

Example

Five hours of overtime at a $30 per hour base rate generates $225 in gross overtime pay — but at a 30% marginal rate, only about $157 lands in your pocket, which is worth knowing before committing to extra shifts.

Is overtime taxed at a higher rate?

Not at a special “overtime rate” — it’s taxed as ordinary income, but since it stacks on top of your regular pay, it can be taxed at your highest marginal bracket for that pay period.

Is all overtime paid at 1.5×?

In the US, federal law (the FLSA) requires 1.5× for non-exempt employees over 40 hours per week. Some states and some employers, such as double-time after 12 hours, have higher requirements.

Are salaried employees eligible for overtime?

Only non-exempt salaried employees under wage-and-hour law. Many salaried roles are classified as exempt and don’t receive overtime regardless of hours worked.