How is overtime pay calculated?

Standard overtime pay in the US is 1.5 times your regular hourly rate for all hours worked over 40 in a workweek under the FLSA. Formula: Overtime Pay = (Regular Rate × 1.5) × Overtime Hours. Example: $20/hr worker doing 10 overtime hours earns $300 in overtime pay ($20 × 1.5 × 10).

What is the 2026 overtime threshold for exempt employees?

Under the 2024 FLSA rule (in effect in 2026), the salary threshold for executive, administrative, and professional exemptions is $684 per week ($35,568/year). Employees earning below this threshold must be paid overtime regardless of their job duties or title.

Is overtime taxed at a higher rate?

Overtime is not taxed at a special higher rate — it is taxed as ordinary income at your marginal rate. However, overtime pay can push your weekly or annual income into a higher tax bracket, meaning more of your income is taxed at that higher rate. From 2025–2028, US workers may also deduct the overtime premium (the extra 0.5×) up to $12,500/year from federal taxable income.

Do salaried employees get overtime pay?

Salaried employees are entitled to overtime if they are classified as non-exempt under the FLSA and earn less than $684/week ($35,568/year). To calculate their overtime rate: divide weekly salary by 40 hours to get the hourly equivalent, then multiply by 1.5. A salaried employee earning $800/week has an effective hourly rate of $20/hr and an overtime rate of $30/hr.

What is California's daily overtime rule?

California requires overtime at 1.5× for hours over 8 in a single workday, and double time (2×) for hours over 12 in a day. Additionally, the first 8 hours worked on a 7th consecutive workday are paid at 1.5×, and anything beyond 8 hours on that 7th day is at 2×. This is stricter than federal FLSA, which only uses a weekly 40-hour threshold.

How does overtime work in the UK?

UK law does not mandate a minimum overtime premium rate. Your right to time and a half or any enhanced rate comes from your employment contract. However, your average pay across all hours (including overtime) must not fall below the 2026 National Minimum Wage of £12.21/hr. Many UK contracts specify 1.25×, 1.5×, or 2× for different overtime conditions.

What is Australia's overtime rate in 2026?

Under Australia's Fair Work Act and most Modern Awards, full-time employees are paid 1.5× (time and a half) for the first two overtime hours and 2× (double time) for hours after that. Ordinary hours are 38 per week. Public holiday work is typically paid at 2.5× under most awards.

Can I adjust the overtime multiplier in this calculator?

Yes. This calculator supports 1.5× (time and a half), 2× (double time), and custom multipliers to match your employment contract, union agreement, or local law. Simply enter your multiplier and the calculator adjusts your gross and estimated net pay instantly.

US · UK · Canada · Australia · 2026 Law

Overtime Pay Calculator

Calculate exact 1.5× time and a half and 2× double time pay instantly. Get gross and net take-home pay for FLSA (US), Fair Work (AU), UK & Canada.

✓ 1.5× & 2× & Custom Rates✓ Net After-Tax Estimate✓ US · UK · Canada · Australia✓ 100% Free · No Sign-Up

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Overtime Pay Calculator 2026

1.5× Time and a Half · 2× Double Time · Custom Rate · Gross & Net Pay · FLSA · Fair Work · UK · Canada

✅ Updated for April 2026•⚡ Instant Results

All calculations run locally in your browser • No data stored • For estimation purposes only

Overtime Pay Quick Reference — Common Hourly Rates

Based on a standard 40-hour workweek · 10 overtime hours worked

Regular Rate	1.5× OT Rate	2× Double Time	Regular Pay (40hr)	10hr OT Pay	Weekly Total
$12/hr	$18/hr	$24/hr	$480	$180	$660
$15/hr	$22.50/hr	$30/hr	$600	$225	$825
$17/hr	$25.50/hr	$34/hr	$680	$255	$935
$18/hr	$27/hr	$36/hr	$720	$270	$990
$20/hr	$30/hr	$40/hr	$800	$300	$1,100
$22/hr	$33/hr	$44/hr	$880	$330	$1,210
$25/hr	$37.50/hr	$50/hr	$1,000	$375	$1,375
$30/hr	$45/hr	$60/hr	$1,200	$450	$1,650
$35/hr	$52.50/hr	$70/hr	$1,400	$525	$1,925
$40/hr	$60/hr	$80/hr	$1,600	$600	$2,200
$50/hr	$75/hr	$100/hr	$2,000	$750	$2,750

All figures before tax. Use the calculator above for your exact hours, rate, and net take-home pay.

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1.5× & 2× Ready

Time and half + double time

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Custom Rate Support

Union & contract rates

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Net Tax Estimate

Gross vs take-home

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4 Countries Covered

US · UK · CA · AU

2026 Overtime Law — Key Numbers Worldwide

40 hrs

US FLSA weekly overtime threshold

$35,568

US annual salary OT exemption threshold

38 hrs

Australia Fair Work weekly threshold

£12.21/hr

UK NMW floor across all hours (2026)

Overtime Pay Rules by Country — 2026

This calculator supports all four frameworks. Select your country and the correct threshold applies.

Country / Region	OT Threshold	Standard OT Rate	Double Time?	Governing Law
🇺🇸 United States (federal)	40 hrs/week	1.5× (time and a half)	Not federally required	FLSA 1938
🇺🇸 California	8 hrs/day or 40 hrs/week	1.5× daily; 2× over 12hrs/day	Yes — over 12hrs/day	CA Labor Code §510
🇨🇦 Ontario	44 hrs/week	1.5×	Not mandated	Ontario ESA
🇨🇦 British Columbia	8 hrs/day or 40 hrs/week	1.5×	Not mandated	BC Employment Standards Act
🇨🇦 Quebec	40 hrs/week	1.5×	Not mandated	Act Respecting Labour Standards
🇬🇧 United Kingdom	Contractual only	Contract-based (1× to 2×)	Contractual	Working Time Regs 1998
🇦🇺 Australia	38 hrs/week	1.5× first 2hrs, then 2×	Yes — after 2 OT hours	Fair Work Act 2009
🇳🇿 New Zealand	Contractual / 40 hrs	Contract-based (typically 1.5×)	Contractual	Employment Relations Act 2000

How Overtime Pay Works in 2026 — Complete Guide for Employees & Employers

FLSA rules · Salaried employee OT · California daily OT · Tax on overtime · New 2025 deduction

Updated April 2026~10 min readEarnings Guide · Worldwide

How Overtime Pay is Calculated — The Standard Formula

In the United States under the Fair Labor Standards Act (FLSA), overtime begins when a non-exempt employee works more than 40 hours in a single workweek. Every overtime hour is paid at a minimum of 1.5 times the regular rate.

The Overtime Pay Formula (Used Worldwide)

Step 1: Overtime Rate = Regular Hourly Rate × 1.5

Step 2: Overtime Pay = Overtime Rate × Overtime Hours

Step 3: Weekly Total = (Regular Rate × 40) + Overtime Pay

Example: $20/hr worker, 10 OT hours → OT rate: $30/hr · OT pay: $300 · Weekly total: $1,100

1.5× vs 2× Overtime — When Each Rate Applies

Time and a Half (1.5×)

✓ US: hours over 40/week (FLSA)
✓ California: hours over 8/day
✓ Canada (ON): hours over 44/week
✓ Australia: first 2 overtime hours
✓ Most UK contracts: standard OT

Double Time (2×)

✓ California: hours over 12/day
✓ California: 7th consecutive workday
✓ Australia: after 2 OT hours (most awards)
✓ Some UK contracts: bank holidays
✓ Many union agreements: Sundays

The 2025 Overtime Tax Deduction — A New Benefit Most Workers Don't Know About

Starting with the 2025 tax year (reported on your 2026 federal return), US workers can deduct the overtime premium — the extra 0.5× portion of overtime pay — from their federal taxable income. This deduction runs through 2028.

Single filers: up to $12,500 deductible from the overtime premium
Married filing jointly: up to $25,000 deductible
Phase-outs begin at higher income levels
Applies to non-exempt workers across all industries

On $8,000 in overtime premiums for the year, a single filer could deduct all $8,000 — saving roughly $960–$1,760 in federal tax depending on their bracket.

Salaried Employees and Overtime — How It Works

Many workers assume that being salaried means no overtime. This is a widespread and costly misconception. Under the FLSA, salaried employees earning under $684/week ($35,568/year) are non-exempt and entitled to overtime pay.

To calculate overtime for a salaried non-exempt employee: divide the weekly salary by 40 hours to get the effective hourly rate, then multiply by 1.5.

Example: $650/week salary ÷ 40 hours = $16.25/hr effective rate. Overtime rate: $16.25 × 1.5 = $24.38/hr.

Industry-Specific Overtime — Construction, Healthcare & Trucking

Overtime rules apply universally to non-exempt workers, but some industries have additional complexity worth knowing:

Construction: Most workers are non-exempt. Prevailing wage projects may mandate higher base rates, which increases the overtime premium accordingly.
Healthcare / Nursing: Hospitals may use 14-day work period agreements under FLSA §7(j), which changes when overtime kicks in. Calculate carefully — many hospital nurses are owed back pay for misapplied rules.
Trucking: Interstate truck drivers are generally exempt from FLSA overtime under the Motor Carrier Act exemption. However, intrastate drivers and those below 10,001 lb vehicles may qualify. California's rules are stricter.
Retail: Non-exempt retail workers earn standard 1.5× after 40 hours. Commission-based retail workers have a different calculation method for their regular rate of pay.

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Most Common Overtime Mistake

Many employees are told "you're salaried, so no overtime." Under FLSA, this is only true if your salary is over $684/week ($35,568/year)AND your job duties meet the exemption test.

If you're below that threshold, you're owed 1.5× for every hour over 40 — regardless of job title.

New for 2025–2028: Overtime Tax Deduction

Single filersDeduct up to $12,500 in OT premium

Married filing jointlyDeduct up to $25,000 in OT premium

What is deductibleThe extra 0.5× portion of OT pay only

Tax saving (22% bracket)Up to $2,750 on the max deduction

Ask your tax preparer about Form 1040 Schedule 1 for the OT premium deduction.

🇺🇸 California Daily OT Rules

Hours 1–8/dayRegular rate (1×)

Hours 9–12/dayTime and a half (1.5×)

Hours 12+/dayDouble time (2×)

7th consecutive day, 1–8hrsTime and a half (1.5×)

7th consecutive day, 8+hrsDouble time (2×)

Source: California Labor Code §510

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Frequently Asked Questions

Overtime Pay — Common Questions Answered

FLSA rules · California daily OT · UK & Australia · Salaried workers · Tax on overtime

Standard US overtime is 1.5× your regular rate for hours over 40/week (FLSA). Formula: (Regular Rate × 1.5) × Overtime Hours. Example: $20/hr × 1.5 = $30/hr overtime rate. 10 overtime hours × $30 = $300 in overtime pay, on top of $800 for 40 regular hours. Weekly total: $1,100 before tax.

Under the FLSA rules in effect for 2026, the salary threshold for executive, administrative, and professional exemptions is $684/week ($35,568/year). Employees earning below this must receive overtime pay regardless of job title or duties.

No — overtime is taxed as ordinary income at your marginal rate, not a separate higher rate. It can push some earnings into a higher bracket. From 2025–2028, US workers can also deduct the overtime premium (the extra 0.5× portion) up to $12,500/year if single or $25,000 if married filing jointly.

Salaried non-exempt employees earning under $684/week are entitled to overtime. To find their rate: Weekly salary ÷ 40 = effective hourly rate. Effective hourly rate × 1.5 = overtime rate. Example: $700/week ÷ 40 = $17.50/hr effective rate. Overtime rate: $17.50 × 1.5 = $26.25/hr.

California requires 1.5× for hours over 8 in a single workday and 2× for hours over 12. On a 7th consecutive workday, the first 8 hours pay 1.5× and anything beyond pays 2×. This is stricter than federal FLSA, which only uses a 40-hour weekly threshold.

UK law sets no minimum overtime premium. Your rate comes from your employment contract. However, average pay across all hours must not fall below the 2026 National Minimum Wage of £12.21/hr. Most contracts specify 1.25×, 1.5×, or 2× for overtime and bank holidays.

Under the Fair Work Act and most Modern Awards, Australian workers earn 1.5× for the first two overtime hours and 2× after that. Ordinary full-time hours are 38 per week. Public holidays typically pay 2.5× under most awards.

Yes. This calculator supports 1.5× (time and a half), 2× (double time), and custom multipliers. Enter your union rate, contractual rate, or any regional rate and the calculator adjusts gross and estimated net pay instantly.

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