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Overtime Calculator

Time and a half is the default. Double time is available. Tax withholding uses the whole overtime wage. The deduction uses only the premium half.

Tax year 2026 Tables verified 2026-10-09
Overtime, tips, and bonus
W-4, benefits, local tax, and year-to-date

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Every two weeks

Net pay $1,887.47

Effective tax rate 20.53% of gross. About $4,089.54 a month over a full year.

  • Net pay $1,887.47
  • Federal income tax $201.15
  • FICA $181.69
  • State and local $73.81
  • State payroll $30.88
This paycheck
$1,887.47
Full year, net
$49,074.49
Full year, gross
$61,750.00
Hourly equivalent
$25.00
  • The overtime and tips deduction is claimed on the tax return. It does not lower Social Security, Medicare, or withholding on this paycheck.
How we calculated this
Gross pay$2,375.00
  1. This paycheck $2,375.00

Amount entered. Hourly rate times hours, plus overtime, tips, and any bonus on this check.

Federal income tax$201.15
  1. 1a Taxable wages this period $2,375.00
  2. 1b Pay periods in the year 26
  3. 1c Annualized wages (1a × 1b) $61,750.00
  4. 1d Step 4(a) other income $0.00
  5. 1e 1c + 1d $61,750.00
  6. 1f Step 4(b) deductions $0.00
  7. 1g $8,600.00 (any other filing status)
  8. 1i Adjusted annual wages $53,150.00
  9. Table Single or married filing separately, standard (Pub 15-T 2026)
  10. Bracket $19,900.00 up to $57,900.00: $1,240.00 plus 12% of the amount over $19,900.00
  11. 2g Tentative annual tax $5,230.00
  12. 2h Per paycheck (2g ÷ periods) $201.15
  13. 3 Step 3 credits, per paycheck $0.00
  14. 4c Extra withholding $0.00
  15. Federal income tax this paycheck $201.15

IRS Publication 15-T (2026), Worksheet 1A. Percentage method for automated payroll systems.

Social Security$147.25
  1. Rate 6.2% × $2,375.00 of Social Security wages, wage base $184,500.
  2. This paycheck $147.25

Social Security Administration, contribution and benefit base. 6.2% up to the 2026 wage base of $184,500. The annual maximum is $11,439.

Medicare$34.44
  1. This paycheck $34.44

IRS Publication 15 (2026). 1.45% of Medicare wages. No wage base.

California income tax$73.81
  1. Method EDD Method B, annual table, Single, dual-income married, or married with multiple employers.
  2. Standard deduction $5,706.00
  3. Taxable income $56,044.00
  4. Annual table row Over $41,452.00: $1,124.21 plus 6.60% of the excess.
  5. Tax before allowance credit $2,087.28
  6. Allowance credit 1 × $168.30 = $168.30
  7. Annual withholding $1,918.98
  8. This paycheck $73.81

California Employment Development Department. California EDD 2026 Method B exact-calculation method, annual payroll-period tables.

California SDI$30.88
  1. Rate 1.3% × $2,375.00 = $30.88

California EDD, payroll tax rates. 1.3% of wages. No wage cap in 2026.

Net pay$1,887.47

Pay and the deduction are different amounts

If you are paid double time, the check includes the full double-time wage. The deduction described by the IRS for qualified overtime is still the half-time premium required by the Fair Labor Standards Act, up to $12,500, or $25,000 if you file jointly.

Questions

What is time and a half on $25 an hour?

The overtime rate is $37.50. Five hours a week is part of gross pay, and it is taxed as wages.

What part is deductible?

The extra $12.50 an hour, the half above the regular rate, subject to the annual cap and the income phase-out. Double time does not make the deductible half larger.

Does California daily overtime change the federal deduction?

Daily overtime can change what you are paid. The federal deduction still looks at the premium above the regular rate, and this calculator does not apply California’s daily rules by itself.

Will my employer lower withholding for the deduction?

Do not assume that. The deduction is claimed on the return. FICA is unchanged.

Related

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Who is responsible

Published by PaycheckZip.com. A credentialed reviewer has not signed this page. The review seat is open. Figures are estimates from the tables named in the method, checked 2026-10-09. They are not tax advice.

Case amounts on the public list, such as $216.15 of federal income tax on the single biweekly example, come from the same code as this page.