Working overtime is one of the fastest ways to boost a paycheck, but the number you earn per overtime hour is rarely the number that lands in your bank account. Between the overtime premium itself, FICA payroll taxes, and federal income-tax withholding, a chunk of every extra hour disappears before payday. This overtime tax calculator shows you exactly how much of your overtime is real, spendable money.
Enter your base hourly rate, the hours you normally work, and the overtime hours you logged. The tool separates your regular pay from your overtime premium pay, then subtracts FICA and federal withholding to reveal your net weekly take-home. Sliders make it easy to compare a quiet week against a heavy one, or to test how a raise in your overtime multiplier changes the final number.
How to Use
- Type your Hourly Base Rate — the standard wage you earn for non-overtime hours. If you make $25 an hour, enter 25.
- Set your Regular Hours per Week. The federal default is 40; anything beyond that in the same workweek usually qualifies as overtime.
- Enter your Overtime Hours per Week — the extra hours you worked past the regular threshold.
- Choose your Overtime Multiplier. Under the Fair Labor Standards Act (FLSA) the federal floor is 1.5x, but some union contracts, salaried rules, or state agreements pay double time (2.0x) on Sundays or holidays.
- Adjust the FICA Rate if you need to. For most W-2 employees it stays at 7.65% (6.2% Social Security plus 1.45% Medicare). Self-employed people pay the doubled self-employment rate, but this calculator models the employee side.
- Set your Federal Tax Withholding to your estimated marginal bracket. A single filer with moderate pay is often around 12%; test 10% and 22% to bracket your real result.
The result card then breaks your pay into regular pay, the overtime premium, gross pay, the two tax lines, and your final net take-home.
How Overtime Pay Is Built
The calculation follows the federal overtime rule: after 40 hours in a workweek, every additional hour must be paid at no less than one and a half times your regular rate. The math is straightforward:
Gross Pay = (Hourly Rate × Regular Hours) + (Hourly Rate × Multiplier × Overtime Hours)
Then taxes reduce that gross amount:
Net Pay = Gross Pay − (Gross Pay × FICA%) − (Gross Pay × Federal Withholding%)
Worked example: at $25 an hour with 40 regular hours and 10 overtime hours at 1.5x, regular pay is $1,000, and the overtime premium adds 25 × 1.5 × 10 = $375. Gross pay is $1,375. FICA at 7.65% takes about $105.19, and 12% federal withholding takes $165. Your net weekly take-home lands near $1,104.81 — meaning the $375 of overtime premium shrinks to roughly $305 after taxes, and your whole $1,375 paycheck arrives as about $1,105.
Two things drive that gap. First, overtime is taxed at the same flat withholding rates as your regular wages here, so every extra dollar still loses the combined tax percentage. Second, because overtime pushes you into a higher paycheck for that week, a larger portion of it may be withheld at your next bracket. The calculator uses your entered federal rate as an estimate; your employer's actual withholding depends on your W-4 allowances, filing status, and payroll frequency.
Why the After-Tax Number Matters
It is tempting to chase overtime purely on the hourly premium. A 1.5x rate sounds like a 50% raise, and it is — on paper. But once FICA and federal withholding are applied, the after-tax value of an overtime hour is closer to 1.32x or 1.4x, not 1.5x, depending on your bracket. Knowing that effective rate helps you decide whether an extra shift is worth the time, or whether a commute, childcare, or burnout cost would eat the difference.
State taxes and local income taxes are not included here, so if you live in California, New York, or another state with income tax, your real net pay will be a little lower still. Use this tool to estimate the federal picture, then add your state rate on top for a closer guess.
Examples
Example 1 — A standard week. You earn $25/hr, work 40 regular hours and 10 overtime hours at 1.5x, with 7.65% FICA and 12% federal withholding. Regular pay is $1,000, overtime premium is $375, gross is $1,375, taxes total about $270.19, and your net weekly take-home is $1,104.81.
Example 2 — Double-time holiday. You earn $30/hr, work 40 regular hours and 15 holiday hours at 2.0x. Regular pay is $1,200; the overtime premium is 30 × 2.0 × 15 = $900; gross is $2,100. After FICA ($160.65) and 12% federal ($252), your net is about $1,687.35 for the week.
Example 3 — A quiet week. If your overtime hours drop to zero, the overtime premium line disappears. At $25/hr for 40 hours, gross is $1,000, taxes are about $196.50, and net take-home is roughly $803.50 — a clean baseline to compare against your busier weeks.
FAQ
How is overtime pay calculated after taxes?
First build gross pay: regular hours times your base rate, plus overtime hours times your base rate times the overtime multiplier. Then subtract FICA (7.65% for employees) and your estimated federal withholding percentage. The remainder is your net take-home. For example, 10 overtime hours at $25/hr and 1.5x add $375 to gross, but about $70 of that goes to FICA and federal tax.
Is overtime taxed at a higher rate than regular pay?
Overtime is not taxed at a special higher rate; it is taxed as ordinary wages. However, because an overtime week is a larger paycheck, more of that week may fall into a higher withholding bracket, so overtime dollars can feel taxed more heavily. Your annual total tax is what matters, not any single paycheck.
What is the federal overtime multiplier?
Under the FLSA, covered non-exempt employees must be paid at least 1.5 times their regular rate for hours worked beyond 40 in a workweek. Some states, cities, or union agreements require double time (2.0x), especially for Sundays, holidays, or beyond a daily overtime threshold.
What is FICA and why is it 7.65%?
FICA is the Federal Insurance Contributions Act payroll tax. For employees it is 6.2% to Social Security (on wages up to an annual cap) plus 1.45% to Medicare, totaling 7.65%. It is withheld from every W-2 paycheck, including overtime. Self-employed workers pay both halves, about 15.3%, through the self-employment tax.
Do overtime hours affect my tax bracket for the whole year?
No. A single high-overtime week increases that week's withholding, but your final tax bracket is based on your total annual taxable income. If overtime pushes you into a higher bracket only on paper, you may over-withhold during the busy months and receive it back as a refund when you file.
Are state and local taxes included in this calculator?
No. This calculator estimates federal withholding and FICA only. If your state has an income tax (for example California or New York), apply your state rate to the gross pay on top of this result to get a closer estimate of your real take-home.
Disclaimer
This overtime tax calculator is provided for informational purposes only and does not constitute financial, tax, payroll, or legal advice. Figures are estimates based on the inputs you enter; actual withholding depends on your W-4, filing status, pay frequency, pre-tax deductions, state and local taxes, and current IRS tables. FICA and federal rates are approximations. Always confirm your actual paycheck and withholding with your employer or a qualified tax professional.