Sources: 29 USC 207(a), 29 CFR 778.110 and 778.115, Cal. Lab. Code 510, Colorado COMPS Rule 4.1.1, the Labor Department state table, IRC §225, IRS FS-2026-13, Rev. Proc. 2024-40 and 2025-32 (brackets), SSA. Federal income tax only; state income tax is not included. Rules checked October 19, 2026. Method, assumptions and test cases
Enter your rate and hours above. The tool applies the federal 40-hour rule and, if you pick a state with daily overtime, that state's rules too, then estimates your 2025-2028 federal overtime deduction.
How overtime pay is calculated
A non-exempt employee earns at least 1.5 times the regular rate for every hour over 40 in a workweek (29 USC 207(a)). At $25 an hour, a 50-hour week pays 40 × $25 = $1,000 plus 10 × $37.50 = $375: $1,375. A non-discretionary bonus raises the regular rate: add it to the week's pay and divide by all hours (29 CFR 778.110(b)).
States with daily overtime
California: 1.5x over 8 hours a day, 2x over 12, seventh-day rules (details).
Alaska: 1.5x over 8 hours a day (employers with 4 or more employees).
Nevada: 1.5x over 8 hours a day if you earn under $18.00 an hour.
Colorado: 1.5x over 12 hours a day.
Kentucky: 1.5x on the seventh day when you work all seven, unless your employer does not allow more than 40 hours that week (KRS 337.050). The calculator treats a week of 40 hours or less as under that limit.
Most other states follow the federal 40-hour week; a few have special rules for certain jobs. Daily overtime already paid counts toward the weekly 40, so no hour is paid overtime twice (29 CFR 778.202(c); Cal. Labor Code 510). Overtime laws by state
Is overtime tax free?
No, but for tax years 2025 to 2028 you can deduct the premium half of federally required overtime, up to $12,500 ($25,000 joint), reduced above $150,000 of income. State daily overtime and double time do not count. No tax on overtime calculator
Every rule is sourced from the statute, the Labor Department or the IRS, and the maths is published as test cases. Estimates for information only, not tax or legal advice.
Frequently asked questions
How do I calculate time and a half?
Multiply your hourly rate by 1.5 for every hour over 40 in the workweek. At $20 an hour, time and a half is $30, so 10 overtime hours add $300 to the $800 you earn for the first 40 hours: $1,100 for the week.
When do I get overtime under federal law?
The Fair Labor Standards Act requires at least 1.5 times your regular rate for hours over 40 in a workweek, if you are a non-exempt employee (29 USC 207(a)). Federal law has no daily overtime: a 12-hour day in a 36-hour week earns no overtime federally.
Which states pay daily overtime?
California (over 8 hours, and double time over 12), Alaska (over 8, employers with 4 or more employees), Nevada (over 8 if you earn under $18.00 an hour) and Colorado (over 12). Kentucky adds a seventh-day rule. Most other states follow the federal 40-hour week, with special rules for some jobs in a few; see the state laws page.
Does a bonus change my overtime rate?
Yes. A non-discretionary bonus, such as a production or attendance bonus, is part of the regular rate. Add it to your hourly pay for the week and divide by all hours worked; overtime is paid at half that rate on top (29 CFR 778.110(b)).
Is overtime tax free now?
No. Overtime is still taxed, but for tax years 2025 to 2028 you may deduct the premium half of federally required overtime, up to $12,500 ($25,000 on a joint return), from your federal taxable income. Social Security, Medicare and state tax still apply.
What is double time?
Two times your regular rate. No federal law requires it. California requires it for hours over 12 in a day and over 8 on the seventh consecutive day of the workweek; some employers pay it by contract.
Does Texas or Florida have an overtime law?
Neither has its own overtime law in the Labor Department state table, so the federal rule applies: 1.5 times your regular rate for hours over 40 in a workweek if the FLSA covers you. The same is true in 17 other states.
How is overtime taxed?
Like the rest of your wages: Social Security (6.2%), Medicare (1.45%) and federal income tax at your bracket, plus any state tax. For tax years 2025 to 2028 you can then deduct the federally required premium half on your federal return. Open "Take-home on this week’s overtime" in the calculator to see the split.
Do I get overtime for working weekends or holidays?
Not under federal law, unless those hours take you over 40 in the workweek. The Labor Department says weekend, night and holiday premiums are a matter of agreement between you and your employer.
Can my employer give me comp time instead of overtime pay?
Not if you work for a private company. Under the FLSA, only state and local government agencies may give compensatory time off instead of overtime pay, at 1.5 hours for each overtime hour (29 USC 207(o)).
How do I calculate overtime with two pay rates?
Add up your pay from both rates for the week, divide by all hours worked to get the weighted-average regular rate, and pay half of that extra for each hour over 40 (29 CFR 778.115). Use "Second pay rate this week" in the calculator.
What is double time and a half?
Two and a half times your regular rate. No federal or state rule in this calculator requires it; some employers pay it by contract. For a $20 rate it is $50 an hour.
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