Question 1

How is overtime calculated in 2026?

Accepted Answer

Federal law requires 1.5x your regular rate for hours over 40/week. Some states like California require daily overtime (over 8 hours/day) and double time (over 12 hours/day or 7th consecutive day).

Question 2

Which states have daily overtime rules?

Accepted Answer

California requires overtime after 8 hours/day and double time after 12 hours/day. Alaska and Nevada also have daily overtime rules. All other states follow the federal 40-hour weekly threshold.

Question 3

Is overtime taxed differently?

Accepted Answer

Overtime wages are taxed as regular income — there is no special overtime tax rate. However, the No Tax on Overtime deduction (2025-2028 law) allows you to deduct up to $12,500 in overtime wages from your federal taxable income.

Question 4

How much overtime can I earn before hitting a higher tax bracket?

Accepted Answer

Only the dollars above a bracket threshold are taxed at the higher rate. Use the calculator to enter your base salary and overtime hours to see your exact take-home at any income level.

Overtime Pay Calculator
by State 2026

All 50 States

Overtime Pay Calculatorby State 2026

All 50 States

Overtime Pay Calculator
by State 2026