Overtime Calculator
Calculate your overtime pay & total weekly earnings — free & instant · Updated June 2026
Enter your hourly rate and hours worked,
then hit Calculate.
What Is an Overtime Calculator?
An overtime calculator determines how much you earn when you work beyond your standard weekly hours — using your regular hourly rate, total hours worked, and the overtime rule that applies to your state and employment type. It instantly shows your overtime pay, regular pay, and total weekly earnings.
Under the Fair Labor Standards Act (FLSA), most nonexempt employees in the US are entitled to overtime pay at 1.5 times their regular rate for every hour worked beyond 40 in a workweek. Several states — including California, Alaska, Nevada, and Colorado — apply additional daily overtime thresholds that can trigger overtime even when weekly hours stay under 40.
- May 14, 2026 — FLSA salary threshold formally restored: The DOL's Wage and Hour Division published a technical amendment removing the vacated 2024 rule from the Code of Federal Regulations. The federal exempt salary threshold is officially $684/week ($35,568/year) — confirmed and codified.
- 2026 W-2 reporting — mandatory OT tracking begins: Starting Tax Year 2026, employers must separately report qualified overtime on W-2s using new IRS Box 12 codes. (For 2025, separate reporting was optional and penalty-free.)
- California exempt salary raised to $70,304/year ($1,352/week) effective January 1, 2026, up from $68,640 in 2025, based on CA minimum wage rising to $16.90/hour.
How to Use This Calculator
Enter your details in the calculator above to get your result instantly. Here's what each field means:
Regular Hourly Rate
Your standard hourly pay before overtime kicks in. If you are salaried but nonexempt, divide your weekly salary by 40 to find your effective hourly rate. For example: $800/week ÷ 40 = $20.00/hr. This effective rate is then used to calculate your 1.5× overtime rate.
Total Hours Worked This Week
All hours worked in your workweek — the standard 7-day period your employer designates (Sunday–Saturday under FLSA by default). Do not average hours across multiple weeks. Under federal law, overtime is calculated per individual workweek regardless of your pay period length.
Overtime Rule
- Federal FLSA — overtime after 40 hours/week at 1.5×. Applies to most US workers. Salary threshold: $684/week ($35,568/year), confirmed as of May 14, 2026.
- California — overtime after 8 hrs/day or 40 hrs/week; double time after 12 hrs/day. CA exempt salary floor: $70,304/year ($1,352/week) as of January 1, 2026.
- Alaska / Nevada — daily overtime threshold of 8 hours/day in addition to the 40-hour weekly rule.
- Colorado — overtime after 12 hours/day or 40 hours/week, whichever comes first.
How Overtime Pay Is Calculated
The federal overtime formula is straightforward. For every hour beyond 40 in a workweek, a nonexempt employee earns 1.5× their regular rate:
Overtime Rate = Regular Hourly Rate × 1.5
Total Weekly Pay = (Regular Rate × 40) + (Overtime Rate × OT Hours)
| Scenario | Hourly Rate | Hours Worked | OT Hours | OT Rate (1.5×) | Total Pay |
|---|---|---|---|---|---|
| Light OT | $20.00 | 45 | 5 | $30.00 | $950.00 |
| Heavy OT | $20.00 | 55 | 15 | $30.00 | $1,250.00 |
| Higher wage | $35.00 | 48 | 8 | $52.50 | $1,820.00 |
| Salaried nonexempt $800/wk ÷ 40 = $20/hr |
$20.00 | 47 | 7 | $30.00 | $1,010.00 |
Exempt vs. Nonexempt Employees Updated May 2026
Not every worker qualifies for overtime. FLSA divides employees into two classifications based on a salary test, a duties test, and in some cases a compensation level test.
Nonexempt Employees — Overtime Eligible
Nonexempt employees must receive overtime pay for all hours over 40 in a workweek. This includes virtually all hourly workers and salaried employees earning under $684/week ($35,568/year).
May 2026 update: On May 14, 2026, the DOL's Wage and Hour Division published a technical amendment to formally restore the 2019 salary threshold and remove the vacated 2024 rule text from the Code of Federal Regulations. The $684/week floor is now fully codified — not just held by court order. The 2024 rule's automatic three-year increases are permanently off the table.
Exempt Employees — Not Overtime Eligible
To be classified as exempt, an employee must satisfy all three of the following:
- Salary basis test: Paid a fixed, predetermined salary — not hourly.
- Salary level test: Earns at least $684/week ($35,568/year) under federal law.
- Duties test: Primary job responsibilities fall under a recognized white-collar exemption — executive, administrative, professional, outside sales, or computer employee.
Failing any single test means the employee is nonexempt and overtime-eligible. A salary alone is never sufficient.
Highly Compensated Employees (HCE)
A separate, higher-tier exemption applies to highly compensated employees. Under the restored 2019 rule (confirmed May 2026), an HCE must earn a total annual compensation of at least $107,432 — including at least $684/week on a salary or fee basis — and customarily perform at least one duty of an exempt executive, administrative, or professional employee.
| Employee Type | OT Eligible? | 2026 Threshold |
|---|---|---|
| Hourly worker | ✅ Yes (nonexempt) | All hours over 40/week at 1.5× |
| Salaried — under $684/week | ✅ Yes (nonexempt) | Below federal salary floor |
| Salaried — over $684/week + qualifying duties | ❌ No (exempt) | $684/week + duties test (federal) |
| Highly Compensated Employee (HCE) | ❌ No (exempt) | $107,432/year total comp + $684/week salary |
| Independent contractor | ❌ No | Not covered by FLSA |
| Federal government employee | ✅ Special rules | Governed by 5 CFR Part 551 |
State Overtime Rules 2026 Thresholds
Federal FLSA is the national minimum floor. States may impose stricter overtime rules. When federal and state rules conflict, the rule that gives the greater benefit to the employee applies.
California $70,304 exempt threshold 2026
California has the most rigorous overtime rules in the country, operating on both a daily and weekly basis for nonexempt employees:
- 1.5× rate: Hours beyond 8 in a single workday, or beyond 40 in a workweek, or the first 8 hours on the 7th consecutive workday.
- 2× rate (double time): Hours beyond 12 in a single workday, or hours beyond 8 on the 7th consecutive workday of the week.
2026 California exempt salary threshold: Effective January 1, 2026, employees must earn at least $70,304/year ($1,352/week) to qualify for exemption — up from $68,640 in 2025. This is calculated as twice the 2026 state minimum wage of $16.90/hour for a 40-hour workweek. Computer software professionals must earn at least $58.85/hour (or $122,573/year) in 2026. Licensed physicians and surgeons must earn at least $107.17/hour.
Other States with Enhanced Overtime Rules
- Alaska — overtime required after 8 hours/day or 40 hours/week, whichever triggers first.
- Nevada — daily overtime (8 hrs/day) applies to employees earning less than 1.5× Nevada's state minimum wage.
- Colorado — overtime required after 12 hours in a single day or 40 hours in a workweek.
- Oregon — daily overtime rules apply in manufacturing and certain other industries.
No Tax on Overtime — OBBBA 2025–2028 Deduction 2026 W-2 Changes
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, introduced a federal income tax deduction on qualified overtime compensation — retroactive to January 1, 2025 through December 31, 2028. Here is the fully updated picture for 2026:
What It Is
A temporary federal income tax deduction — not a full exemption, not a withholding change. Only the premium portion of overtime pay qualifies: the "extra half" of time-and-a-half above your regular rate. If you earn $20/hr and work 10 overtime hours, the qualifying deduction amount is $100 (10 hrs × $10 premium), not $300 (the full overtime pay).
2026 W-2 Reporting — Mandatory Starting This Year
This is the most significant 2026 change for the OBBBA overtime deduction:
- Tax Year 2025 (filed in 2026): Employers were not required to separately report qualified overtime. The IRS granted full penalty relief under IRS Notice 2025-62. Employers could optionally report it in Box 14 of the W-2 or on a supplemental statement. IRS Notice 2025-69 provided calculation methods for employees whose employers did not provide separate accounting.
- Tax Year 2026 onward: Employers are now required to separately report qualified FLSA overtime compensation on W-2s. The IRS has added new Box 12 codes specifically to track overtime amounts eligible for the deduction. Penalty relief is no longer available for failures to separately report.
Who Qualifies
- Must be a nonexempt employee covered by FLSA — exempt salaried workers do not qualify.
- Must receive FLSA-mandated overtime (time-and-a-half for hours worked over 40/week under federal law).
- Must have a valid Social Security number issued before the tax return due date.
- Cannot file as Married Filing Separately.
- Overtime earned under state law only — not FLSA-mandated — does not qualify for the deduction.
- For California employees: only the FLSA-qualifying portion of overtime (hours over 40/week) counts; California-only daily overtime hours do not qualify under OBBBA.
Deduction Limits & Phase-Outs
| Filing Status | Max OT Deduction | Phase-Out Begins (MAGI) | Full Phase-Out |
|---|---|---|---|
| Single / Head of Household | $12,500 | $150,000 | $162,500 |
| Married Filing Jointly | $25,000 | $300,000 | $325,000 |
* The deduction reduces proportionally through the phase-out range. Above the full phase-out threshold, no deduction is available.
What Has NOT Changed
- Paycheck withholding is unchanged. Overtime is still withheld at your normal federal income tax rate when paid. You claim the deduction when you file your annual return.
- FICA taxes still apply. Social Security and Medicare taxes are assessed on all overtime pay, including the qualifying portion.
- State and local income taxes are not affected. The deduction is federal only.
- The deduction expires December 31, 2028 unless Congress passes new legislation to extend it.
- Check your 2025 W-2 Box 14 — your employer may have voluntarily reported your qualified overtime amount there.
- If your employer did not separately report it for 2025, use IRS Notice 2025-69's calculation method when filing your return, or consult a tax professional.
- For Tax Year 2026: your employer is now required to report qualified overtime on your W-2 using the new Box 12 codes — verify this is happening in your payroll system.
- Consider submitting an updated Form W-4 if you receive significant overtime — this can reduce over-withholding throughout the year.
Common Overtime Calculation Mistakes
- Averaging hours across pay periods: FLSA requires overtime to be calculated per individual workweek. 50 hours one week and 30 the next = 10 overtime hours owed for week one — full stop.
- Excluding non-discretionary bonuses from the regular rate: Bonuses and commissions that are promised in advance (non-discretionary) must be included when calculating the regular rate of pay, which directly affects the overtime rate.
- Misclassifying employees as exempt after the May 2026 rule restoration: If your organization raised salaries or reclassified employees in response to the now-vacated 2024 rule, review those decisions. The governing federal threshold is $684/week — not the $844/week or $1,128/week levels from the vacated rule.
- Ignoring daily overtime thresholds: In California, Alaska, Nevada, and Colorado, overtime can be triggered by a single long workday — even if total weekly hours are under 40.
- Undercounting hours worked: Pre-shift and post-shift work, required training sessions, on-call time, and certain travel time may all count as compensable "hours worked" under FLSA.
- Substituting comp time for overtime in the private sector: Private employers cannot legally replace overtime pay with compensatory time off under FLSA. Only state and local government employers may do this, under specific conditions.
- Assuming OBBBA eliminates overtime withholding: The "no tax on overtime" deduction does not change paycheck withholding. Overtime is still taxed when paid. Employees claim the deduction on their annual federal tax return.