Is overtime taxed more?

Overtime is not usually taxed at a special higher tax rate, but larger paychecks can have more withholding.

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Your estimate

Total weekly pay $1,187.50
Regular hours40.00
Overtime hours5.00
Regular pay$1,000.00
Overtime pay$187.50
Effective hourly rate$26.39

This estimate uses a weekly overtime threshold of 40 hours unless stated otherwise.

Quick answer

Overtime is not usually taxed at a special higher tax rate, but larger paychecks can have more withholding.

What this means for your paycheck

Overtime pay depends on hourly rate, total hours, overtime multiplier, worker classification, and applicable federal or state rules. Use the calculator to estimate the numbers, then verify the rule that applies to your job.

Related keywords

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Frequently asked questions

Is overtime taxed more?

Overtime is not usually taxed at a special higher tax rate, but larger paychecks can have more withholding.

Can I use the overtime calculator with this guide?

Yes. Enter your hourly rate and weekly hours to estimate the pay effect.