Overtime Calculator (2026)
Overtime pay is your hourly rate times the multiplier (usually 1.5×) times overtime hours. At $25/hr, that is $37.50 per OT hour. But overtime is taxed at your marginal rate, so on $19,500.00 of gross overtime you keep about $13,718.25. Enter your hours below to see both numbers.
How is overtime pay calculated?
Multiply your hourly rate by the overtime multiplier (usually 1.5) and by the overtime hours worked.
What is time-and-a-half on $25/hr?
$37.50 per overtime hour. Ten OT hours a week adds about $19,500.00 gross a year.
Is overtime taxed at a higher rate?
No. Overtime is taxed at your normal marginal rate — it can feel higher only because it stacks on your regular pay.
How much overtime do you keep?
At a 29.65% marginal rate, about $13,718.25 of that $19,500.00 — the rest is tax.
How do you calculate overtime pay?
Under federal law, non-exempt employees earn at least 1.5 times their regular rate for hours over 40 in a week. Multiply your hourly rate by 1.5, then by the overtime hours. Some employers pay double time for holidays.
The calculator above turns that into an annual figure and, crucially, shows the after-tax amount — the part most overtime calculators leave out.
How much overtime pay do you actually keep?
| Item | Amount |
|---|---|
| Regular pay ($25/hr × 40h) | $52,000.00 |
| Overtime pay (10h/wk × 1.5×) | $19,500.00 |
| Tax on the overtime (29.65%) | $5,781.75 |
| Overtime you keep | $13,718.25 |
Is overtime taxed at a higher rate?
No. There is no special overtime tax rate. Overtime is ordinary wages, taxed at your marginal rate. It can look more heavily taxed because withholding on a big paycheck assumes that rate continues all year, but it evens out at filing.
What about the no-tax-on-overtime deduction?
For 2025–2028, a federal deduction can shelter part of the overtime premium from income tax. See our dedicated no tax on overtime calculator for that break.
How do you calculate overtime step by step?
- Find your regular hourly rate.
- Multiply by 1.5 (or 2 for double time) for the overtime rate.
- Multiply by the overtime hours worked.
- Subtract tax at your marginal rate to see what you keep.