Free paycheck, salary and tax calculators

Overtime Calculator

Enter your hourly rate and hours to see your overtime pay this week.

$/hour
/week
/week
More options (double time, filing status)
Total pay this week (before tax)
$1,375.00
Regular pay$1,000.00
Overtime pay$375.00
Double-time pay$0.00
Overtime premium (the extra "half")$125.00

"No tax on overtime" deduction estimate

Qualifying premium if worked every week for a year$6,500.00
Deductible amount (after cap and phase-out)$6,500.00
Estimated federal tax saved$1,280.00

The deduction is claimed on your tax return; it does not change your paycheck withholding unless you update your W-4.

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Related: time and a half rates · no tax on overtime savings.

How the "no tax on overtime" deduction works

  • Applies to tax years 2025 through 2028.
  • Only the premium part counts: on $30/hour overtime at time and a half, the deductible part is $15 per overtime hour, not $45.
  • Maximum deduction $12,500 a year ($25,000 married filing jointly).
  • The maximum falls by $100 for every $1,000 of modified AGI above $150,000 ($300,000 joint).
  • You claim it on your federal return whether or not you itemize. It reduces income tax only, not Social Security or Medicare.

Our estimate assumes the overtime you enter is worked every week of the year and uses your federal marginal tax rate. Check IRS guidance or a tax professional before filing.

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Frequently asked questions

How is overtime pay calculated?

Under the federal Fair Labor Standards Act, non-exempt employees earn at least 1.5 times their regular rate for hours over 40 in a workweek. Multiply your hourly rate by 1.5, then by your overtime hours.

Is overtime tax-free now?

Not completely. For 2025–2028, you can deduct the "half" premium part of FLSA overtime pay from federal taxable income, up to $12,500 ($25,000 for joint filers). Social Security, Medicare and most state taxes still apply.

Who gets the overtime deduction?

Workers paid FLSA-required overtime with a valid Social Security number. The limit shrinks by $100 for each $1,000 of income above $150,000 ($300,000 for joint filers). Married people must file jointly to claim it.

Does double time count for the deduction?

Only the overtime premium that federal law requires (the extra half-time on hours over 40) qualifies. Extra pay required only by state law, a union contract or company policy does not.

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