Overtime Pay Net Calculator
The Fair Labor Standards Act (FLSA) requires non-exempt employees to be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek. This calculator computes your gross overtime pay at the 1.5x rate, then deducts FICA taxes (Social Security 6.2% and Medicare 1.45%) and an estimated federal income tax based on the 2025 bracket schedule applied to your total weekly earnings annualized, giving you an estimate of your net take-home for a pay period that includes overtime.
Overtime pay formula
OT rate = regular rate * 1.5
OT gross = OT rate * OT hours
Total weekly gross = (regular rate * regular hours) + OT gross
Annual equivalent = total weekly * 52
Net = total weekly - FICA - federal tax per week
Federal income tax is estimated by annualizing the weekly gross (multiplying by 52), applying the 2025 bracket schedule less the standard deduction, then dividing by 52. FICA is applied at the weekly rate up to the annual SS wage base cap.
FLSA overtime rules overview
- Overtime is required for hours over 40 in a workweek, not over 8 in a day (federal rule; some states differ).
- The workweek is any fixed recurring 7-day period established by the employer.
- Overtime cannot be waived by employee agreement; the FLSA minimum is a mandatory floor.
- The DOL's Wage and Hour Division enforces FLSA overtime protections and can recover back wages and liquidated damages.
- Salaried non-exempt employees earning below the DOL salary threshold ($1,128/week as of 2025) are entitled to FLSA overtime.
Overtime pay: frequently asked questions
What is the FLSA overtime rule?
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate of pay for hours worked over 40 in a workweek. This applies to most hourly workers and some salaried workers who earn below the FLSA salary threshold.
How is the regular rate calculated for overtime purposes?
The regular rate includes all remuneration for employment except specific exclusions like gifts, vacation pay, overtime premiums, and expense reimbursements. For hourly workers, the regular rate equals the hourly wage. For salaried non-exempt workers, it equals weekly salary divided by hours actually worked.
Is overtime pay taxed at a higher rate?
No. Overtime pay is taxed at the same marginal rates as regular wages. However, because overtime pushes your total wages higher, the additional income may be taxed at a higher marginal bracket. The withholding on the larger paycheck is simply based on the annualized larger amount.
Are all employees entitled to overtime under FLSA?
No. Exempt employees (executive, administrative, professional, computer, and outside sales employees who meet the DOL salary and duties tests) are not entitled to FLSA overtime. Independent contractors are not covered by FLSA at all.
Do state overtime laws add additional protections?
Yes. Some states have stronger overtime protections than the FLSA. California requires daily overtime (over 8 hours in a day) and double time for hours over 12 in a day. When state and federal laws differ, the more protective rule applies.
Official sources
- DOL Wage and Hour Division: Fair Labor Standards Act (FLSA).
- IRS: Publication 15-T (Federal Income Tax Withholding Methods).
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.