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US tax & time tools

Overtime calculator

Separates the half-time premium that qualifies for the federal deduction from ordinary overtime pay, and prints every Schedule 1-A Part III line with your numbers.

In short

Federal law pays covered employees at least one and a half times their regular rate for hours over 40 in a workweek. The new federal deduction counts only the extra half on those hours, up to $12,500 ($25,000 joint), reduced above $150,000 ($300,000 joint) of modified AGI. It lowers income tax only.

  • Weekly to yearly pay
  • Schedule 1-A phase-out
  • Worksheet
  • PNG image
  • Runs in your browser

Private by design. Nothing you type is uploaded or saved. Add this tool to your phone or computer for one-tap access.

Your pay

Overtime hours

1.5 is time and a half.

Daily overtime, holiday or weekend premiums not over 40 hours.

Tax return (optional)

Schedule 1-A line 3, including this pay.

For example a spouse’s. Both spouses share one joint limit.

Enter your regular hourly rate.

A federal estimate. State overtime rules, union premiums and unusual pay such as a fluctuating workweek are not covered, and only the half-time premium on hours over 40 qualifies for the deduction. Line numbers follow the 2025 Schedule 1-A; the 2026 form is still a draft. Confirm with your payroll records and a tax professional.

Overtime worksheet
United States · FLSA and Schedule 1-A Part III
Estimate
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Enter your regular hourly rate.

A federal estimate based on the Fair Labor Standards Act and the 2025 Schedule 1-A Part III mechanics, worked out from the figures entered. It is not tax or payroll advice.

How to use it

  1. Choose hourly or salary pay and enter your regular rate, or your annual salary and the hours it covers.
  2. Enter your weekly hours over 40 and the multiplier, usually 1.5.
  3. Add any other premium hours, such as daily overtime. They are paid but never counted toward the deduction.
  4. Optionally choose a filing status and enter your modified AGI and marginal rate to see the deduction.
  5. Read the pay and the Schedule 1-A lines on the right, then copy the summary or download an image.

How it calculates

Overtime is paid week by week: hours over 40 in a fixed 168-hour workweek, at your regular rate times the multiplier. For the deduction only the extra half (half the regular rate on each hour over 40) counts, never more than the premium actually paid. The phase-out then follows Schedule 1-A Part III: line 18 less the threshold, divided by $1,000 and rounded down, times $100.

For example, someone paid $22.00 an hour who works 46 hours a week earns 40 × $22.00 = $880.00 in regular pay plus 6 × $33.00 = $198.00 in overtime, $1,078.00 a week before tax. Over 52 weeks the overtime is $10,296.00, but only the extra half counts for the federal deduction: 6 × $11.00 × 52 = $3,432.00. With modified AGI of $80,000 there is no phase-out, and at a 22% marginal rate that is about $755 less federal income tax. The pay and rates are made up; yours come from what you type.

Who should use it

  • Hourly and salaried workers who want to see weekly, bi-weekly and yearly overtime pay
  • Taxpayers who want to estimate the qualified overtime deduction before filing
  • Payroll and HR staff checking the half-time premium against the full overtime pay

Who should not use this

  • Workers whose overtime is only required by state law or a union contract; that pay above the federal requirement does not qualify
  • Anyone filing married filing separately, because that status cannot claim the deduction
  • Anyone who needs a final tax figure; your payroll records, Form W-2 and the final IRS forms decide it

Limitations

  • It is federal only. State daily overtime, seventh-day premiums and minimum rates differ by state and are not built in.
  • The savings figure is the deduction times the marginal rate you choose. It ignores credits, other deductions and state tax, and is not a refund prediction.
  • Fluctuating workweeks, bonuses folded into the regular rate, tipped employees and compensatory time need your payroll records.
  • The 2026 Schedule 1-A is still a draft. The tool uses the final 2025 form’s Part III mechanics and says so.
  • Nothing is uploaded or stored on a server. Clearing your browser data also removes the saved profile.

Sources and review

Reviewed on 18 Oct 2026 against the published sources below. Rules and prices change, so check the current position before you rely on a figure.

Common questions

How is “no tax on overtime” going to be calculated?
The deduction equals the half premium on overtime hours the FLSA requires: one-half of your regular rate times hours over 40. It is capped at $12,500 ($25,000 on a joint return) and reduced by $100 for every full $1,000 your modified AGI exceeds $150,000 ($300,000 joint). It lowers taxable income; it is not a payroll-tax exemption.
Is overtime pay tax-free now?
No. Overtime pay is still wages, and the IRS says it generally remains subject to Social Security and Medicare tax. The rule is a deduction on the premium portion, which reduces income tax if you qualify.
How do I calculate overtime for a monthly salary employee?
Divide the annual salary by 52, then by the weekly hours it covers, to get an hourly rate. Multiply by 1.5 for the overtime rate. For example, $52,000 covering 40 hours is $25.00 an hour, so each overtime hour pays $37.50.
How do I calculate overtime on a bi-weekly paycheck?
Calculate each workweek separately, because federal overtime applies to hours over 40 in each 168-hour workweek, not to the two-week total. Add the two weeks to get the bi-weekly gross. The calculator shows weekly and bi-weekly gross for a typical week.
Do I have to itemize to claim the overtime deduction?
No. The IRS says you can claim it whether you take the standard deduction or itemize.
Does double-time pay all qualify?
No. Only the amount needed to meet the FLSA’s time-and-a-half requirement qualifies, which is the half premium on hours over 40. Pay above time and a half does not add to the deduction.
Which tax years does the overtime deduction cover?
Tax years 2025 through 2028. Employers report qualified overtime separately starting in 2026, in box 12 of Form W-2 with code TT.

Guides that explain the rules

No tax on overtime, explained

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This tool produces a document from the information you type. It does not give legal, tax or accounting advice, and it does not check that your figures or rates are right. See the disclaimer. Found a mistake? Report an error in a calculation.