One regular hour at your base rate set against your overtime hours at the premium rate, then the tax at your marginal rate and what you keep. Overtime is taxed as ordinary income — the same rate schedule as the rest of your pay — so the only difference in the rate column is the overtime multiplier, not the tax.
Line
Hours
Rate
Gross
Tax
Net
Regular (per hour)
1
25
25
6
20
Overtime
10
38
375
83
293
Estimates only — not financial, tax, or professional advice.
Calculated in your browser — the numbers you enter are never sent to our servers.
What it calculates: Net overtime pay, Gross overtime pay, Tax on overtime, Overtime hourly rate.
$375 gross, $292.50 net, at an overtime rate of $37.50
A $25 hourly rate at time-and-a-half is $37.50 an hour. Ten hours is $375 gross, and at a 22% marginal rate the tax is $82.50, leaving $292.50 — about $29.25 an hour after tax.
That after-tax hourly figure is the one to compare against. The decision is not whether $375 is worth having; it is whether $29.25 an hour is worth ten hours of your time, given what else those hours could be. Stated that way, the multiplier matters far less than people assume: time-and-a-half on a 22% rate nets barely more per hour than the gross regular rate.
It does not push your regular pay into a higher bracket
Overtime is ordinary income and sits on top of regular earnings, so it is taxed at whatever band that additional income falls into. The persistent belief that overtime is "taxed more" comes from two places: the marginal rate is genuinely higher than the effective rate people are used to, and payroll withholding on a large pay period can over-withhold temporarily.
Neither means overtime is penalised. The extra income is taxed at your marginal rate exactly as any other extra income would be, and if withholding overshot, the difference returns at filing. Declining overtime to avoid a higher bracket always leaves you with less money, never more.
Benefit tapers and allowance withdrawals, not tax bands
There are real cases where extra income is worth much less than the marginal rate suggests, and they are not tax bands. Income-tested benefits that taper, childcare support that cuts off at a threshold, and allowances that withdraw as income rises can all produce effective marginal rates far above any published band.
Someone near such a threshold should compute the combined effect before taking regular overtime, because the answer is occasionally that additional hours are worth close to nothing. Use the marginal rate field here to enter the true combined rate rather than the income tax band, and the net figure becomes meaningful.
Social contributions, and everything the multiplier depends on
Only income tax is applied. Payroll or social contributions apply to overtime as to any other pay and will reduce the net further, typically by several more points unless an annual ceiling has already been reached.
The multiplier itself is a legal and contractual question that varies widely: time-and-a-half above a weekly threshold in some jurisdictions, double time for certain days or hours in others, and no premium at all for salaried exempt roles. Enter the multiplier your own arrangement actually provides rather than assuming 1.5.
Frequently Asked Questions
Why is so much taken from my overtime?
Overtime stacks on top of your regular pay, so it is taxed at your top marginal rate rather than your lower average rate. Payroll may also withhold extra during a high-earning period, which can be reconciled at filing.
Does overtime push me into a higher tax bracket?
It can push the additional income into a higher bracket, but only that portion is taxed at the higher rate, not all your pay. This calculator uses a single marginal rate, so for income spanning brackets, treat the result as an estimate.
Should social security come out of overtime?
In many systems, yes, overtime is subject to the same payroll deductions as regular pay, up to any caps. This tool models only income tax, so add social-security deductions separately if they apply to you.
Is overtime worth it after tax?
Even taxed at your marginal rate, overtime still increases your take-home pay; you keep one minus your marginal rate of each unit earned. At a 22% marginal rate you keep about 78% of gross overtime, so it remains additional net income.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Overtime pay is taxed at a single marginal rate; in reality additional income can span more than one bracket.
The multiplier reflects your overtime pay rule (for example time-and-a-half or double time).
The marginal rate is the one you enter for your situation; verify it.
Results are estimates for general and educational use.
Where it stops
Overtime pay rules, tax brackets, and social-security treatment vary by country, region, and year — no figure here is authoritative.
Using one marginal rate ignores that extra earnings may cross into a higher bracket.
Social-security or other payroll deductions on overtime are not modelled here.
This tool does not run payroll or guarantee the net amount actually paid.
Related Calculators
Salary & Take-Home PayEstimate take-home pay with sourced payroll models for the US, India, UK, Canada, and Australia, plus a net-to-gross solver.
Bonus TaxWhat a bonus nets after withholding, under both the flat supplemental rate and your own marginal rate.
Income TaxUS federal income tax for 2026 or 2025 on the IRS brackets: every filing status, deductions and credits, effective and marginal rate, and your refund or amount owed.
Salary TDSMonthly salary TDS from your estimated annual tax, adjusted for what has already been deducted.
UK Income TaxIncome tax for 2026/27 in England, Wales, Northern Ireland or Scotland, band by band, with National Insurance, student loans, the £100,000 taper and a table of common salaries.
India Income TaxNew regime against old for tax year 2026-27: nil up to a ₹12.75 lakh salary, the rebate’s marginal relief, surcharge and cess, and the deductions the old regime needs to win.
Australian Income TaxIncome tax for 2026-27 or 2025-26, bracket by bracket, with the low income tax offset, the Medicare levy, HELP repayments and a table of common Australian salaries.
Canadian Income TaxFederal and provincial income tax for 2026 in every province and territory, with CPP, EI, the Ontario Health Premium, the Quebec abatement and a province-by-province comparison.
Tax rules vary by country, state, tax year, filing status, income type, deductions, and exemptions. This calculator is educational and uses the values you enter. Always verify final tax treatment with official sources or a qualified tax professional.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Tested that the overtime rate is the base rate times the multiplier and that tax applies at the marginal rate only, not to regular pay.
Frequently Asked Questions now show on the page: 4 answers, checked in a page-by-page audit.
What the calculation assumes and where it stops now show on the page.
Add this calculator to your site
Responsive embed — and private: nothing your visitors type leaves their browser.