Overtime Tax Calculator

Question 1

Is overtime taxed at a higher rate?+

Answer

Overtime pay itself is not taxed at a special rate — it's taxed as ordinary income at your marginal federal tax bracket rate. However, because overtime increases your total annual income, it may push you into a higher tax bracket, meaning the additional overtime income is taxed at a higher rate than your regular pay.

Question 2

How is overtime pay calculated?+

Answer

Under the FLSA, non-exempt employees must receive at least 1.5× their regular pay rate for all hours worked over 40 in a workweek. For example, at $20/hour, your overtime rate is $30/hour. Some employers pay double time (2×) for certain hours, though only the 1.5× minimum is federally required.

Question 3

How much of my overtime check do I actually keep?+

Answer

At a $20/hour base rate with 5 hours of weekly overtime (1.5×), you earn $150/week in overtime gross pay. After approximately 22% total effective federal taxes (for a mid-range income single filer), you'd take home roughly $117/week in overtime net pay — a meaningful difference from the $150 gross.

Question 4

Does overtime push me into a higher tax bracket?+

Answer

It can. If your regular income puts you near the top of your current bracket, overtime may push total income into the next bracket — but only the portion above the threshold is taxed at the higher rate. For 2025 single filers, the 12%-to-22% jump happens at $48,475 of taxable income. Use our calculator to model your exact situation.

Question 5

Who is required to receive overtime pay?+

Answer

The FLSA requires overtime pay for non-exempt employees — generally hourly workers and some salaried workers earning less than $684/week ($35,568/year) as of 2024 rules. Exempt employees (executive, administrative, professional) are generally not entitled to overtime. State laws may have additional requirements.

Question 6

Is double-time pay taxed differently than time-and-a-half?+

Answer

No — both are taxed identically as ordinary income at your applicable federal bracket rate plus FICA. The only difference is the higher gross amount, which may result in a larger portion falling into higher tax brackets. Our overtime calculator lets you model both 1.5× and 2× scenarios.

Question 7

How does overtime affect my withholding for the pay period?+

Answer

Employers typically use the aggregate method for overtime: they add your overtime wages to your regular wages for the pay period and withhold as if that total were your regular pay for the whole year. This can result in higher withholding on the overtime check, but it adjusts when you file your annual tax return.

Question 8

Should I work overtime given the taxes?+

Answer

Generally, yes — overtime always increases your take-home pay even after taxes. Even if your overtime is taxed at 22-24%, you still keep 76-78 cents of every dollar earned. The question is whether the extra work is worth the extra net income to you personally.

Base Rate	OT Hours/Wk	OT Rate (1.5×)	Annual OT Gross	Est. OT Take-Home
$15/hr	5 hrs	$22.50/hr	$5,850	~$4,847
$20/hr	5 hrs	$30.00/hr	$7,800	~$6,084
$20/hr	10 hrs	$30.00/hr	$15,600	~$12,168
$25/hr	5 hrs	$37.50/hr	$9,750	~$7,410
$30/hr	8 hrs	$45.00/hr	$18,720	~$13,478

Overtime Tax Calculator — 2025

⏰ Overtime Pay Breakdown

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