Overtime Pay Calculator 2026
Calculate your weekly overtime pay for any US state. Select your state, enter your hourly rate and hours, and see your gross pay instantly.
Calculation Breakdown
How Overtime Pay Works in the United States
Under the Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay of at least 1.5 times their regular rate of pay ("time-and-a-half") for all hours worked over 40 in a workweek. This is the federal minimum standard that applies nationwide.
Source: U.S. Department of Labor — Wage and Hour Division
What Is Overtime Pay?
Overtime pay is additional compensation required by law when an employee works beyond the standard threshold. The most common formula is:
States With Daily Overtime Rules
Several states go beyond the federal weekly standard and require overtime on a daily basis:
- California — 1.5× after 8 hrs/day; 2× after 12 hrs/day; special 7th-consecutive-day rules (Labor Code §510)
- Alaska — 1.5× after 8 hrs/day or 40 hrs/week
- Colorado — 1.5× after 12 hrs/day or 12 consecutive hours
- Nevada — 1.5× after 8 hrs/day (if earning less than 1.5× state minimum wage)
- New York — Federal 40hr rule + "spread of hours" premium for workdays >10 hours
The 2026 "No Tax on Overtime" Deduction
Starting in 2026, the One Big Beautiful Bill Act allows qualifying workers to deduct the overtime premium portion (the extra 0.5× for time-and-a-half) from federal income tax. Key details:
- Only the premium is deductible — not the base rate for OT hours
- Cap: $12,500 (single) / $25,000 (married filing jointly)
- Phase-out begins at $150,000 / $300,000 AGI
- FICA (Social Security + Medicare) still applies to all wages including overtime
Source: IRS guidance under the One Big Beautiful Bill Act (2025). Verify with IRS.gov for the latest updates.
Regular Rate of Pay
The FLSA requires overtime to be calculated on the regular rate, which includes not just the base hourly wage but also non-discretionary bonuses, commissions, shift differentials, and certain other compensation. This calculator supports weighted regular rate computation when you enter bonuses or tips.
Source: DOL Fact Sheet #56A — Regular Rate
Frequently Asked Questions
Who is eligible for overtime pay?
Under the FLSA, most hourly (non-exempt) employees are entitled to overtime. Salaried workers may be exempt if they meet specific duties tests and earn above the salary threshold ($58,656/year as of 2025). Independent contractors are not covered. Check with your state labor department for state-specific exemptions.
Does overtime apply to salaried employees?
It depends. Salaried employees classified as "non-exempt" still receive overtime. The exemption depends on both salary level and job duties (executive, administrative, professional, computer, or outside sales). Simply being paid a salary does not automatically exempt you.
How are bonuses included in the overtime rate?
Non-discretionary bonuses (performance bonuses, production bonuses, attendance bonuses) must be included in the regular rate calculation. The bonus is divided by total hours worked to get the adjusted regular rate, and the overtime premium is calculated on that adjusted rate. Discretionary bonuses (e.g., holiday gifts) are excluded.
What is a workweek?
A workweek is a fixed, regularly recurring period of 168 hours (seven consecutive 24-hour periods). It can begin on any day and at any hour. Each workweek stands alone — you cannot average hours across multiple weeks (except under the 8/80 healthcare exception). Your employer defines the workweek and must keep it consistent.
Is overtime pay mandatory or can I waive it?
Overtime pay is a legal requirement under the FLSA and cannot be waived by agreement between employer and employee. Even if you agree to work for straight time only, your employer must pay the overtime premium. However, employers can generally require or restrict overtime hours.