Salary Intelligence

Overtime pay
after taxes

Enter your hourly rate plus regular and overtime hours to see your gross and net pay — with taxes estimated using 2026 federal and state brackets.

$/hr
hrs
hrs
Pay breakdown (this period)
Regular pay (40 hrs × $25)$1,000
Overtime pay (8 hrs × $37.50)$300
Total gross$1,300
Estimated tax$284
Net pay (est.)$1,016
Effective rate
21.9%
Annual equiv.
$67,600
Annual net
$52,825

Tax estimated by annualizing this period's gross (×52) · Single filer · California · 2026 brackets

How Overtime Income Is Taxed

Overtime pay is taxed as ordinary income — there is no special "overtime tax rate." What often happens, though, is that your employer withholds more from an overtime-heavy paycheck because higher per-paycheck earnings imply a higher annualized income.

If you work overtime infrequently, you may end up over-withheld for the year and receive a refund when you file. This calculator shows your estimated net take-home so you know what a shift of overtime hours is actually worth.

FLSA Overtime Rules

Under the Fair Labor Standards Act, non-exempt employees must receive overtime pay at 1.5× their regular rate for any hours worked beyond 40 in a single workweek.

  • Weekly, not averaged: Overtime is calculated on a weekly basis. Two 50-hour weeks cannot be averaged with two 30-hour weeks to avoid the overtime requirement.
  • State rules can be stricter: California requires overtime for hours beyond 8 in a single day — even if the weekly total stays under 40.
  • Exempt employees: Salaried employees classified as exempt under FLSA (generally earning over $684/week and meeting a duties test) are not entitled to overtime pay.

Frequently Asked Questions

Is overtime taxed at a higher rate?+

No special overtime tax rate exists. Overtime income is taxed at your marginal rate like any other earned income. A heavy overtime paycheck may have higher withholding due to annualized income estimation, but this typically corrects itself at tax time.

How do I know if I qualify for overtime pay?+

Non-exempt hourly workers generally qualify for 1.5× pay after 40 hours in a workweek. Salaried employees must earn above the FLSA threshold ($684/week in 2026) and pass a duties test to be classified as exempt.

Does overtime count toward my annual tax bracket?+

Yes. All earned income is combined at tax filing. If overtime pushes your total into a higher bracket, only the income above the threshold is taxed at the higher rate.