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Overtime Net Pay Calculator

Calculate your actual take-home pay from overtime hours after federal tax, state tax, Social Security, and Medicare deductions.

Net Overtime Pay

How Overtime Pay Works Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive 1.5x their regular hourly rate for all hours over 40 in a workweek. This is commonly called “time and a half.”

If your regular rate is $22/hour: Overtime rate = $22 × 1.5 = $33/hour

Taxes on Overtime Overtime pay is taxed as ordinary income — there is no special overtime tax rate. However, because overtime pushes your total income higher, it may be taxed at a higher marginal rate.

Taxes deducted from overtime:

  • Federal income tax (at your marginal rate)
  • State income tax (varies by state, 0% in 9 states)
  • Social Security: 6.2% (up to $168,600 wage base in 2024)
  • Medicare: 1.45% (no wage base limit)

Total FICA employee share: 7.65%

Example Regular rate: $22/hour Overtime rate: $33/hour Overtime hours: 10 hours × 4 weeks = 40 hours Gross OT: $33 × 40 = $1,320 Federal tax (22%): $290.40 State tax (5%): $66.00 FICA (7.65%): $100.98 Total tax: $457.38 Net OT pay: $1,320 - $457.38 = $862.62 Effective after-tax OT rate: $862.62 / 40 hours = $21.57/hour

Note on Withholding Your paycheck withholding may be higher or lower than your actual tax liability. The marginal rate entered should be your estimated marginal rate for the year, not just the rate on this extra income in isolation.


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