Overtime Calculator

What Is Overtime Pay?

Overtime pay is extra compensation paid to employees who work more than 40 hours in a workweek. Under the Fair Labor Standards Act (FLSA), most employees must receive 1.5 times their regular hourly wage for each hour worked beyond 40.

For example, if your regular hourly rate is $20, any overtime hour should be paid at $30.

Not all employees are eligible—exempt employees like certain salaried professionals may not qualify. Always check with your HR or local labor laws.

Why Taxes Matter on Overtime

Many people wonder, "Does overtime get taxed more?" Technically, overtime pay is taxed at the same rate as your regular income. However, because overtime boosts your overall earnings, it can push you into a higher tax bracket temporarily, making your paycheck feel smaller than expected.

In recent years, some states like California and Illinois have discussed adjustments to overtime tax treatments, but as of 2025, there is no special tax break for overtime income. Your federal and state taxes apply normally.

How to Calculate Overtime Pay with Taxes

Here’s a simple guide:

Determine Regular Hourly Pay: Example: $25/hour.

Calculate Overtime Rate: $25 × 1.5 = $37.50/hour.

Count Overtime Hours: Say you worked 8 overtime hours.

Gross Overtime Pay: 8 × $37.50 = $300.

Estimate Taxes: Use your tax bracket (say 22%) → $300 × 0.22 = $66.

Net Overtime Pay: $300 - $66 = $234.

Our overtime calculator with taxes does these steps instantly for you.

Real-Life Examples of Overtime Pay

California Example

Samantha, a nurse in Los Angeles, earns $35/hour. She worked 10 extra hours this week. California requires daily overtime after 8 hours/day and double time after 12 hours/day. Samantha worked two 12-hour shifts:

• Regular pay: 40 hrs × $35 = $1,400
• Overtime (4 hours at 1.5×): 4 hrs × $52.5 = $210
• Double time (4 hrs at 2×): 4 hrs × $70 = $280
• Total Gross Pay = $1,400 + $210 + $280 = $1,890

Illinois Example

Marcus, a warehouse worker in Chicago, earns $20/hour and worked 50 hours. Illinois follows FLSA:

• Regular pay: 40 hrs × $20 = $800
• Overtime (10 hrs at 1.5×): 10 hrs × $30 = $300
• Total Gross Pay = $1,100

Our calculator helps you figure out these numbers without any hassle.

Why Use Our Overtime Pay Calculator

• Save time: No manual math.
• Tax estimates: Understand take-home pay.
• Location-friendly: Handles different states like California and Illinois.

Whether you need an overtime pay in California calculator, a tax on overtime calculator, or just want to quickly check your earnings, our tool covers it all.

Frequently Asked Questions About Overtime Pay

How is overtime pay taxed?

Overtime pay is taxed just like regular income. There’s no special tax bracket, but higher gross income may increase your total tax rate.

Why does my paycheck feel smaller after overtime?

More earnings mean higher total taxes withheld, especially in progressive tax systems like the US. You still earn more but may see larger deductions.

What counts as overtime in California?

In California, overtime applies after 8 hours per day or 40 hours per week, and double time applies after 12 hours per day.

Do salaried employees get overtime?

Only non-exempt salaried employees are eligible for overtime. Exempt employees (like managers) are typically excluded under FLSA.

How do I calculate overtime pay in Illinois?

Illinois follows federal rules: 1.5× hourly wage after 40 hours weekly. There’s no daily overtime requirement.

Can overtime push me into a higher tax bracket?

Temporarily, yes. But only your overtime earnings within that bracket are taxed higher—not your entire income.

Is overtime mandatory?

Employers can require overtime, but federal law mandates overtime pay for eligible employees. Some states have limits on mandatory overtime.

Conclusion

Overtime should be rewarding—not confusing. Use our Overtime Pay Calculator to stay on top of your earnings, tax deductions, and labor rights. Whether you’re in California, Illinois, or elsewhere, get the pay you deserve!