How do you calculate net pay on a paycheck with overtime?
Overtime is taxed like regular pay — there's no special 'overtime tax.' Add overtime to gross, then apply the same taxes. Ten extra hours at time-and-a-half on a $20/hour job adds $300 gross and roughly $225–$235 to that check's net.
Worked example: $20/hour, 40 regular + 10 OT hours, single (2025)
| Component | Gross | Approx. net |
|---|---|---|
| Regular 40 hrs × $20 | $800 | — |
| Overtime 10 hrs × $30 | $300 | 1.5× rate |
| Total weekly gross | $1,100 | — |
| Federal + FICA (≈23%) | −$253 | Withholding annualizes the big check |
| Net pay | $847 | vs $616 on a regular week |
How to read this table
- Total weekly gross sits at the top of the table ($1,100) — —. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Federal + FICA (≈23%) anchors the bottom (−$253) — withholding annualizes the big check. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 4.3×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- With 5 reference points in the "worked example: $20/hour, 40 regular + 10 ot hours, single (2025)" table, the fastest way to use this page is to find the closest row, take its gross, then stress-test it ±30% before you build a plan on it.
Context
The myth that 'overtime is taxed more' comes from withholding: payroll annualizes each check, so a big overtime check is withheld as if you earn that much every week. You get the excess back as a refund at filing — the actual tax on overtime dollars is your normal marginal rate. Under federal law (FLSA), non-exempt workers earn 1.5× after 40 hours in a week; some states (California) add daily overtime rules.
What moves this number
Filing status and W-4 settings
Married filing jointly roughly doubles bracket widths and the standard deduction, so the same salary withholds very differently by status. Dependents, second jobs, and extra-withholding entries on the W-4 move every paycheck.
State and local taxes
Nine states levy no wage income tax while top marginal rates elsewhere exceed 10%, and cities like New York add their own layer. The same salary can differ by hundreds of dollars per month purely on location.
Pre-tax benefits
Traditional 401(k), HSA, and health premiums come out before income tax, shrinking both taxable income and the withholding on each check — a raise in contributions costs less take-home than the headline amount.
Methodology
Withholding estimated via the IRS annualized percentage method on a $1,100 weekly check, 2025 single brackets, FICA 7.65%. Actual take-home depends on W-4 settings and state tax.
Assumptions and caveats
- Figures use current-year federal brackets and standard deductions; your actual withholding depends on your W-4 and state.
- Estimates exclude credits (Child Tax Credit, EITC), which can materially change the final number.
- This is educational arithmetic, not tax advice — confirm decisions with a tax professional.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate net pay on a paycheck with overtime?
Overtime is taxed like regular pay — there's no special 'overtime tax.' Add overtime to gross, then apply the same taxes. Ten extra hours at time-and-a-half on a $20/hour job adds $300 gross and roughly $225–$235 to that check's net.
Which option pays the most in the worked example: $20/hour, 40 regular + 10 ot hours, single (2025) table?
Total weekly gross, at $1,100 (—). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Federal + FICA (≈23%) at −$253 (Withholding annualizes the big check). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 4.3×. Filing status and W-4 settings and state and local taxes explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
Withholding estimated via the IRS annualized percentage method on a $1,100 weekly check, 2025 single brackets, FICA 7.65%. Actual take-home depends on W-4 settings and state tax.
How can I estimate my own number instead of using a benchmark?
Use the Take-Home Pay Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
More answers in this category
- How do you calculate take-home pay?
- How do you calculate net pay from gross pay?
- What percentage of a paycheck goes to taxes?
- How do you calculate FICA taxes on a paycheck?
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Last updated 2026-10-01.