Overtime Pay Calculator 2026: Time-and-a-Half & Double-Time
Calculate your overtime pay at time-and-a-half (1.5×) or double-time (2.0×). This calculator shows your total overtime wages, the breakdown between the regular-rate portion and the premium portion (which is deductible under the OBBBA), and weekly/annual projections. Under the Fair Labor Standards Act (FLSA), most non-exempt employees must receive at least 1.5× their regular hourly rate for hours worked beyond 40 per workweek.
How Overtime Pay Is Calculated
The formula for overtime pay is:
- OT Rate: Regular Hourly Rate × Overtime Multiplier (1.5× or 2.0×)
- Total OT Pay: OT Rate × Overtime Hours
- Regular Portion: Regular Hourly Rate × Overtime Hours
- Premium Portion: (Multiplier − 1) × Regular Hourly Rate × Overtime Hours
FLSA Overtime Rules
The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid at least 1.5 times their regular rate for all hours worked over 40 in a workweek. "Non-exempt" generally means hourly workers and salaried workers below the salary threshold who do not perform exempt duties. The FLSA does not require double-time pay. Double-time is typically mandated by state laws (e.g., California) or collective bargaining agreements.
Time-and-a-Half vs. Double-Time
- Time-and-a-half (1.5×): The federal minimum overtime rate. Your overtime rate is 150% of your regular rate. The premium portion is 0.5× your regular rate.
- Double-time (2.0×): Some states and contracts require this for extended hours (e.g., California mandates 2× for hours over 12 in a day). The premium portion is 1.0× your regular rate.
The Premium Portion and the OBBBA Deduction
Under the One Big Beautiful Bill Act (OBBBA), the premium portion of overtime pay is eligible for a new federal income tax deduction (IRC §225). Only the extra pay above your regular rate qualifies, not your total overtime wages. For time-and-a-half, that's the 0.5× premium. For double-time, it's the 1.0× premium. To estimate your tax savings from the overtime deduction, a dedicated deduction calculator is in development.
Worked Examples
Example 1: Time-and-a-Half, $25/hr, 10 OT Hours
Profile: $25.00/hr regular rate, 10 overtime hours at 1.5×
Total OT pay = $37.50 × 10 = $375.00
Regular portion = $25.00 × 10 = $250.00
Premium portion = $125.00 (deductible under OBBBA)
Example 2: Time-and-a-Half, $30/hr, 20 OT Hours
Profile: $30.00/hr regular rate, 20 overtime hours at 1.5×
Total OT pay = $45.00 × 20 = $900.00
Regular portion = $30.00 × 20 = $600.00
Premium portion = $300.00 (deductible under OBBBA)
Example 3: Double-Time, $25/hr, 10 OT Hours
Profile: $25.00/hr regular rate, 10 overtime hours at 2×
Total OT pay = $50.00 × 10 = $500.00
Regular portion = $25.00 × 10 = $250.00
Premium portion = $250.00 (deductible under OBBBA)
OBBBA Overtime Deduction
Starting in 2025, the OBBBA created a new federal income tax deduction for overtime premium pay. The premium portion of your overtime (the 0.5x or 1.0x above your regular rate) may be deductible from federal taxable income, up to $12,500 for single filers or $25,000 for married filing jointly. This deduction is available to non-exempt employees who receive qualified overtime compensation under the FLSA. A dedicated overtime deduction calculator is in development that will compute your specific tax savings based on your filing status, income, and total overtime premium for the year.