How to Calculate My Paycheck with Overtime Pay Included (2025 Guide)

Working extra hours can give your paycheck a healthy boost, but the math isn’t always simple. Overtime pay is usually calculated at one-and-a-half times your regular hourly rate, and in some cases, even double time. Once you add those extra earnings, your gross pay rises—but so do your taxes and deductions.

If you’ve ever wondered, “How do I calculate my paycheck with overtime pay included?”, this guide walks you through the process step by step. You’ll see how to figure your overtime rate, add it to your regular earnings, and then subtract deductions like Social Security, Medicare, federal withholding, and state taxes. By the end, you’ll know exactly how overtime affects your take-home pay.

What Overtime Really Means for Your Paycheck

When you work beyond your normal schedule, your paycheck doesn’t just increase by your hourly rate. Overtime is usually paid at time-and-a-half (1.5× your regular rate), and in some cases, even double time. While your gross pay rises, so do your taxes and deductions. That’s why it’s important to calculate your net pay with overtime included—so you can budget realistically.

Step-by-Step: How to Calculate Your Paycheck with Overtime

Step 1 — Find Your Regular Pay

• Hourly workers: Multiply your hourly wage × number of regular hours.
• Salaried workers: Divide your annual salary by 2,080 (for full-time) to get your hourly equivalent.

👉 Example: If you’re a California employee, you can quickly check your baseline earnings with the California paycheck calculator.

Step 2 — Calculate Overtime Rate

• Standard overtime: 1.5× regular hourly rate.
• Double-time (in some states or holidays): 2× regular hourly rate.

👉 Example: At $20/hr, your overtime rate would be $30/hr.

Step 3 — Compute Overtime Pay

Multiply overtime hours × overtime rate.

• Example: 10 overtime hours × $30 = $300 overtime pay.

Step 4 — Add Regular Pay + Overtime Pay

• Regular 40 hrs × $20 = $800
• Overtime 10 hrs × $30 = $300
• Gross pay = $1,100

Step 5 — Subtract Pre-Tax Deductions

Pre-tax deductions reduce taxable income before withholding:

• 401(k) or 403(b) contributions
• Health insurance premiums
• HSA or FSA contributions

Step 6 — Apply FICA Taxes (Social Security & Medicare)

• Social Security: 6.2% on wages up to $176,100 (2025)
• Medicare: 1.45% on all wages
• Additional Medicare tax: 0.9% on high earners

Step 7 — Estimate Federal Income Tax Withholding

Your W-4 form determines how much tax is withheld: filing status, dependents, and extra withholding all matter. Apply the 2025 standard deduction ($15,000 single, $30,000 married filing jointly) before using IRS tax brackets.

👉 For the latest changes, see the federal tax updates 2025.

Step 8 — Account for State and Local Taxes

Not every state taxes wages, but many do. Cities like New York City and Philadelphia also add local withholding.

👉 If you live in New York City, you can estimate your actual take-home with the NYC bi-weekly paycheck tool.

Step 9 — Subtract Post-Tax Deductions

After taxes, your employer may still withhold:

• Roth 401(k) contributions
• Union dues
• Garnishments
• Charitable payroll deductions

Final Formula

Worked Example

• Regular pay: $800
• Overtime pay: $300
• Gross pay: $1,100
• 5% 401(k): –$55
• FICA (SS + Medicare): –$84.15
• Federal withholding: –$120
• State tax (CA example): –$60
  Net paycheck ≈ $781

Without overtime, take-home would have been about $561. Overtime added $220 extra net pay.

FAQs

Is overtime taxed differently?
No, overtime is taxed at the same rate as regular wages.

Can overtime push me into a higher tax bracket?
Yes, frequent overtime may raise your taxable income, but occasional OT usually doesn’t shift your bracket significantly.

Do salaried employees qualify for overtime?
Some do—if they’re non-exempt under FLSA rules.

How is double-time calculated?
Double your regular hourly rate × hours worked.

What’s the fastest way to estimate my paycheck with overtime?
Use a reliable calculator that includes overtime, like state or city-specific tools.