Example: 47.5 hours at $22 an hour
Luis earns $22.00 an hour and worked 47 hours 30 minutes this week.
- Regular hours: 40. Overtime: 47.5 − 40 = 7.5 hours.
- Overtime rate: $22.00 × 1.5 = $33.00 an hour.
- Pay: 40 × $22.00 + 7.5 × $33.00 = $880.00 + $247.50 = $1,127.50 gross, an average of $23.74 for every hour worked.
What counts as overtime
Under the federal Fair Labor Standards Act, non-exempt employees get at least 1.5 times their regular rate for every hour over 40 in a workweek. Each week stands on its own: a 50-hour week followed by a 30-hour week still has 10 overtime hours. Only hours actually worked count, so paid holidays and sick days don’t push you over 40.
Some states add daily overtime; California, for example, pays it after 8 hours in a day. For day-by-day rules, use the time card calculator. See the Department of Labor for the federal rules.
Salaried but non-exempt? Your regular rate is your weekly salary divided by the hours it covers. $1,000 a week for 40 hours is $25 an hour, so overtime is $37.50. A yearly salary is divided by 52 first. Bonuses and shift differentials can raise the regular rate; they aren’t included here.
No tax on overtime
From 2025 to 2028, the extra half of time-and-a-half pay can be deducted from federal taxable income, up to $12,500 a year ($25,000 for joint filers). The deduction phases out above $150,000 of income ($300,000 joint), and only overtime required by the federal 40-hour rule qualifies. Social Security, Medicare and usually state tax still apply. The calculator shows the qualifying amount for the week and an estimate for the year; see the IRS guidance for details.
Time-and-a-half rates
Overtime rates for common hourly wages, and the pay for 10 overtime hours.
| Hourly wage | Time and a half (1.5×) | Double time (2×) | 10 overtime hours pay |
|---|---|---|---|
| $12.00 | $18.00 | $24.00 | $180.00 |
| $15.00 | $22.50 | $30.00 | $225.00 |
| $16.00 | $24.00 | $32.00 | $240.00 |
| $17.00 | $25.50 | $34.00 | $255.00 |
| $18.00 | $27.00 | $36.00 | $270.00 |
| $20.00 | $30.00 | $40.00 | $300.00 |
| $22.00 | $33.00 | $44.00 | $330.00 |
| $25.00 | $37.50 | $50.00 | $375.00 |
| $28.00 | $42.00 | $56.00 | $420.00 |
| $30.00 | $45.00 | $60.00 | $450.00 |
| $35.00 | $52.50 | $70.00 | $525.00 |
| $40.00 | $60.00 | $80.00 | $600.00 |