Overtime Paycheck Calculator

No. Overtime dollars are ordinary wages to the IRS. Big overtime checks feel over-taxed because payroll annualizes each check: it withholds as if you earned that much every period all year. The extra withholding comes back as refund at filing time, and since 2025 up to $12,500 of qualified overtime premium pay ($25,000 for joint filers) is federally deductible on top of that.

Overtime rate = regular hourly rate × 1.5. At $20 an hour, overtime pays $30 an hour. Under the federal FLSA, non-exempt employees earn it for every hour past 40 in a workweek. Ten overtime hours at $20 base therefore add $300 of gross pay to that week.

Whatever your marginal tax rate leaves. A single filer at $20/hour in a no-income-tax state keeps roughly $482 of the $600 that 10 weekly overtime hours add to a biweekly check, about 80%. In a state with income tax the share is a few points lower.

For tax years 2025 through 2028, workers can deduct up to $12,500 of qualified overtime premium pay ($25,000 married filing jointly) on their federal return; it phases out above $150,000 of income ($300,000 joint). Only the premium half-time portion qualifies, not the base wage. To feel it in your paycheck instead of your refund, put your expected annual amount on W-4 line 4(b).

Yes. California, Alaska, Nevada and Colorado require overtime after a daily threshold (8 hours in California, with double time past 12), regardless of the weekly total. Everywhere else the federal weekly-40 rule is the floor.