How overtime pay is calculated
Under the federal Fair Labor Standards Act, most hourly workers must be paid at least 1.5 times their regular rate for hours over 40 in a workweek. Some states and many union contracts go further: California, for example, requires overtime after 8 hours in a day and double time after 12.
Example: at $20 an hour, 40 regular hours pay $800. Ten hours of overtime at $30 add $300, for $1,100 for the week. That's $22 an hour on average, and the overtime premium, the extra above straight time, is $100.
Overtime and taxes
Overtime is taxed like the rest of your pay, but a bigger check can be withheld at a higher rate, which usually evens out when you file. From 2025 through 2028, the One Big Beautiful Bill Act lets many workers deduct the premium part of qualified overtime (the "half" in time-and-a-half) on their federal return, up to $12,500 a year, or $25,000 on a joint return, with a phase-out at higher incomes. See the IRS link below for who qualifies.
To see your take-home pay after tax, use the paycheck calculator, and to total a timesheet first, the hours calculator.
Frequently asked questions
What is time and a half for $20 an hour?
$30 an hour. Multiply the hourly rate by 1.5.
Do salaried employees get overtime?
Salaried workers who are classified as non-exempt do. Exempt employees, generally those paid a salary above the federal threshold who do executive, administrative or professional work, don't have to be paid overtime.
Is overtime after 40 hours or 8 hours a day?
Federal law counts hours over 40 in a workweek. A few states, including California, Alaska, Nevada and Colorado, also have daily overtime rules.
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