How is overtime pay calculated in the US?

Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 in a single workweek. For example: if you earn $20/hour and work 50 hours, your regular pay is 40 × $20 = $800, and your overtime pay is 10 × $30 ($20 × 1.5) = $300. Total weekly pay = $1,100. Some states (CA, NY, CO) have additional overtime rules for daily overtime or double-time.

What is the difference between hourly and salary?

Hourly employees are paid for each hour worked and typically receive overtime (1.5x) for hours over 40/week. Their income can vary based on hours. Salaried employees receive a fixed annual amount regardless of hours worked. Exempt salaried employees do not receive overtime. Non-exempt salaried employees (those earning under $35,568/year in 2026) are still eligible for overtime. Hourly positions often offer more predictable overtime earnings, while salary offers stability.

How do I calculate my take-home pay from hourly wage?

Take-home pay = gross pay − deductions. Gross pay = (regular hours × hourly rate) + (overtime hours × 1.5 × hourly rate). Deductions include: federal income tax (based on W-4 withholding), FICA (Social Security 6.2% + Medicare 1.45% = 7.65% total), state income tax (varies: 0% in TX/FL to 13.3% in CA), and other deductions (health insurance, 401k, etc.). Our hourly wage calculator shows your estimated take-home pay after all standard deductions.

Free Hourly Wage Calculator 2026: Convert Hourly to Salary, Track Overtime & Take-Home Pay

Q: How do I convert hourly wage to annual salary?

To convert hourly wage to annual salary: multiply your hourly rate by the number of hours you work per year. A standard full-time schedule is 40 hours/week × 52 weeks = 2,080 hours/year. Example: $25/hour × 2,080 hours = $52,000/year. For part-time, multiply by your actual weekly hours × 52. Don't forget overtime — if you regularly work 45 hours/week at 1.5x overtime, that significantly increases your annual income.

Q: What is time and a half?

Time and a half means 1.5 times your regular hourly rate. If your normal rate is $16/hour, time and a half is $24/hour. Time and a half applies to: (1) All hours over 40 in a workweek (federal law), (2) Hours over 8 in a day in some states (California, Alaska, Nevada), (3) Certain holidays for some employers (not federally required for private sector), (4) Seventh consecutive day worked (some states like California require overtime on 7th day).

Q: What is the minimum wage in 2026?

The federal minimum wage is $7.25/hour (unchanged since 2009). However, many states and cities have higher minimum wages in 2026: California ($16.50), New York ($16.50), Washington state ($16.66), Massachusetts ($15.75), Colorado ($14.81), Florida ($13.00, rising to $15 by 2027), Oregon ($14.70), Washington DC ($17.50). Some cities have even higher rates: Seattle ($19.97), San Francisco ($18.67), New York City ($16.50 for large employers). Always check your local minimum wage.

Q: How many hours per year is full-time?

Standard full-time is 40 hours/week × 52 weeks = 2,080 hours per year. However, most full-time employees receive paid time off (PTO), so actual working hours are typically 1,800-2,000 hours per year with 2-4 weeks PTO. The Affordable Care Act defines full-time as 30+ hours/week (1,560 hours/year). Part-time is typically under 30 hours/week. Use actual working hours (excluding PTO) for salary conversion.

Introduction

Understanding your true hourly wage is the foundation of smart financial planning. Whether you're an hourly worker, salaried employee, freelancer, or job seeker, knowing how your hourly rate translates to annual income — and what you actually take home after taxes — helps you make better career and financial decisions.

Our Hourly Wage Calculator does all the math for you: convert hourly to annual, biweekly, and monthly; calculate overtime pay; and estimate your take-home pay after federal, FICA, and state taxes.

How to Use the Hourly Wage Calculator

The Hourly Wage Calculator is fast and comprehensive:

Hourly Rate — Your base hourly wage.
Hours Per Week — Your typical weekly hours (standard: 40).
Overtime Hours/Week — Additional hours worked at overtime rate (optional).
Overtime Rate — Typically 1.5x (time and a half) for US workers.
State — Select your state for accurate state tax withholding estimates.
Filing Status — Single, Married Filing Jointly, Head of Household.
Federal Allowances — W-4 allowances for federal tax withholding.

Results update instantly showing annual salary, biweekly pay, monthly pay, and estimated take-home pay after all deductions.

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Convert hourly to salary, calculate overtime, and estimate take-home pay.

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Key Formulas

Hourly to Annual Salary

Annual Salary = Hourly Rate × (Regular Hours × 52 + Overtime Hours × 52 × Overtime Rate)

Example: $25/hour, 40 regular hours + 5 overtime hours/week at 1.5x

Regular annual: $25 × 40 × 52 = $52,000
Overtime annual: $25 × 1.5 × 5 × 52 = $9,750
Total annual: $61,750

Overtime Pay

Overtime Rate = Regular Rate × 1.5 (federal standard)

Some states have different rules:

California: Daily overtime for hours over 8/day. Double time for hours over 12.
New York: Most workers qualify for overtime at 1.5x for over 40 hours.
Colorado: Overtime at 1.5x for over 40 hours, daily overtime for some industries.
Oregon: Daily overtime over 8 hours for some industries.

Common Hourly Wage Conversions

Hourly Rate	Annual (40 hrs)	Biweekly	Monthly	Weekly
$15.00	$31,200	$1,200	$2,600	$600
$20.00	$41,600	$1,600	$3,467	$800
$25.00	$52,000	$2,000	$4,333	$1,000
$30.00	$62,400	$2,400	$5,200	$1,200
$40.00	$83,200	$3,200	$6,933	$1,600
$50.00	$104,000	$4,000	$8,667	$2,000
$75.00	$156,000	$6,000	$13,000	$3,000

Real-Life Scenarios

Scenario 1: Full-Time Hourly Worker with Overtime

$22/hour, 40 hours + 5 hours overtime/week, Texas (no state income tax)

Regular annual: $22 × 40 × 52 = $45,760
Overtime annual: $22 × 1.5 × 5 × 52 = $8,580
Gross annual: $54,340
Estimated take-home: ~$42,990/year (after federal + FICA, no state tax)
Effective hourly rate factoring overtime: $54,340 / (45 × 52) = $23.23/hour average

Scenario 2: Part-Time Worker in California

$18/hour, 25 hours/week, no overtime, California

Annual gross: $18 × 25 × 52 = $23,400
Estimated take-home: ~$18,900/year (after federal, FICA, CA state tax)
Biweekly: ~$727 take-home
Tip: If your income is under the standard deduction ($14,600 in 2026), your federal tax may be $0!

Scenario 3: Salaried Employee Calculating Hourly Rate

$75,000/year salary, 45 hours/week actual work

Hourly equivalent: $75,000 / (45 × 52) = $32.05/hour
If you were hourly at $32.05 with overtime: 40 hrs regular + 5 hrs overtime
Hourly equivalent with OT compensation: much higher!
Key question: Are you being fairly compensated as a salaried exempt employee working 45+ hours?

Minimum Wage by State (2026)

Note: Many cities have even higher minimum wages than their states.

$7.25: Federal minimum (20 states still at federal level)
$13-$17: California ($16.50), New York ($16.50), Washington ($16.66), Massachusetts ($15.75), Colorado ($14.81)
$10-$13: Florida ($13.00), Arizona ($14.35), Maine ($14.15), Michigan ($10.56)
$17.50+: Washington DC ($17.50), Seattle ($19.97), San Francisco ($18.67)
$0 (tipped minimum): Federal tipped minimum is $2.13/hour, but many states require tipped workers to receive the full state minimum wage

7 Tips for Hourly Workers

Know your overtime rights. If you're non-exempt and work over 40 hours, you're entitled to 1.5x pay. Track your hours carefully and speak up if you're not being paid correctly.
Calculate your effective hourly rate for salaried offers. A $60,000 salary with 50-hour weeks = $23.08/hour — possibly less than your current hourly job!
Consider the total compensation package. Health insurance, 401k match, PTO, and other benefits add 20-40% to your base wage.
Negotiate your starting rate. Many employers have flexibility on starting wages. Research market rates for your position and location before negotiating.
Use overtime strategically. A few extra hours per week can significantly boost your annual income without changing your base rate.
Plan for irregular schedules. If your hours fluctuate, budget based on your lowest-income month and treat extra hours as bonus savings.
Understand how taxes affect your paycheck. Use our calculator to estimate your take-home pay and adjust your W-4 withholdings if you consistently get large refunds or owe at tax time.

Use the Hourly Wage Calculator alongside our Paycheck Calculators for more detailed state-specific withholding estimates.

Frequently Asked Questions

How do I convert hourly wage to annual salary?

Multiply your hourly rate by hours per week × 52. For overtime: include overtime hours at 1.5x rate. Example: $25/hr × 40hrs × 52 = $52,000/year.

How is overtime pay calculated?

1.5x your regular rate for hours over 40/week. Calculate: OT rate = hourly × 1.5. Weekly OT pay = OT hours × OT rate. Annual = weekly × 52.

What is time and a half?

1.5x your regular hourly rate. If you earn $20/hr, time and a half = $30/hr. Applies to hours over 40/week under federal FLSA law.

What is the minimum wage in 2026?

Federal: $7.25. State ranges: CA $16.50, NY $16.50, WA $16.66, FL $13.00, TX $7.25. City rates: Seattle $19.97, SF $18.67, DC $17.50.

What's the difference between hourly and salary?

Hourly: paid per hour, eligible for overtime. Salary: fixed annual amount, may be exempt from overtime. Non-exempt salaried workers under $35,568/year still get overtime.

How do I calculate take-home pay from hourly?

Gross pay minus deductions: federal income tax, Social Security (6.2%), Medicare (1.45%), state income tax (if applicable), and other deductions.

How many hours per year is full-time?

Standard: 2,080 hours (40/week × 52 weeks). Actual working hours with PTO: ~1,800-2,000. ACA full-time definition: 30+ hours/week (1,560/year).

Conclusion

Knowing your true hourly wage — including overtime and after taxes — empowers you to make better career and financial decisions. Our Hourly Wage Calculator gives you a complete picture in seconds.

Use our Hourly Wage Calculator to see your full income picture.
Compare job offers by calculating their effective hourly rate including total hours.
Track your overtime hours and make sure you're being paid correctly.
Plan your budget based on take-home pay, not gross income.