Turn overtime hours into 2026 take-home pay.
Enter your hourly rate, your regular and overtime hours, and where you live. The tool applies the 1.5× rule — $25/hour with 10 overtime hours becomes $1,375 a week — then runs the full 2026 tax math (federal, NY State, NYC/Yonkers, FICA) to show what actually reaches your paycheck.
Single filer · Standard deduction ($16,100 federal / $8,000 NY) · No pre-tax deductions
your 2026 overtime breakdown
Your Overtime Take-Home
Transparent calculations. Official sources.
2026 IRS Rev. Proc. 2025-32, NY State/NYC schedules, SSA wage base, NY DOL wage orders. Reviewed October 16, 2026 by Daniel Mitchell, U.S. Tax Consultant. Estimates only, not tax advice. Methodology →
How Overtime Pay Works in New York
Under the federal Fair Labor Standards Act — matched by New York Department of Labor rules — nonexempt employees earn 1.5× their regular hourly rate for every hour worked over 40 in a single workweek. At $25 an hour, that means $37.50 for each overtime hour: 10 extra hours add $375 to the week’s gross, before a dollar of tax.
The 1.5× rule applies to your actual rate, not just the minimum. In 2026, New York’s minimum wage is $17.00 an hour in New York City, Long Island, and Westchester — a $25.50 minimum overtime rate — and $16.00 an hour in the rest of the state, a $24.00 overtime rate.
The 1.5× rule covers nonexempt workers — usually hourly employees. Salaried managers and professionals can be exempt if their duties and pay meet FLSA and NY thresholds: in 2026, the NYC executive/administrative exemption needs at least $1,275 a week (about $66,300 a year). Wondering which side you’re on? Compare hourly vs. salary pay after taxes.
Unlike some states, New York generally requires overtime only after 40 hours in the workweek, not after 8 hours in a day (union contracts and some industries differ). So a 12-hour shift alone doesn’t trigger overtime — the weekly total does.
Overtime Examples: Engine-Verified 2026 Figures
Every figure below came straight out of our 2026 tax engine — single filer, standard deduction, no pre-tax deductions. The $17-an-hour row shows a 2026 NYC minimum-wage worker with 8 overtime hours a week (full $17/hour breakdown). Prefer a flat salary comparison? See $100K after tax in NYC.
| Hourly rate | Hours (regular + OT) | Location | Weekly gross | Annual gross | Annual take-home | Effective rate |
|---|---|---|---|---|---|---|
| $17.00 | 40 + 8 | NYC | $884.00 | $45,968 | $35,876.36 | 22.0% |
| $20.00 | 40 + 10 | NY State | $1,100.00 | $57,200 | $45,648.00 | 20.2% |
| $25.00 | 40 + 10 | NYC | $1,375.00 | $71,500 | $53,529.59 | 25.1% |
| $30.00 | 40 + 5 | NYC | $1,425.00 | $74,100 | $55,117.51 | 25.6% |
| $50.00 | 40 + 10 | Yonkers | $2,750.00 | $143,000 | $99,901.44 | 30.1% |
Annual gross = weekly gross × 52 identical weeks. Take-home computed with the same 2026 engine as the calculator above.
The “No Tax on Overtime” Federal Deduction, Explained
For tax years 2025 through 2028, the One Big Beautiful Bill Act (signed July 4, 2025) created a new federal income-tax deduction for qualified overtime compensation. It is real money — but it is a deduction, not tax-free overtime. Here is what it actually does:
Only the premium counts. The deduction covers just the extra “half” in time-and-a-half — the amount above your regular rate — for FLSA-required overtime reported on your W-2. At $20/hour ($30 OT rate), only $10 per overtime hour qualifies, not the full $30.
Capped and phased out. The maximum deduction is $12,500 a year ($25,000 for joint filers). It phases out once modified adjusted gross income tops $150,000 ($300,000 joint), shrinking $100 for every $1,000 above the threshold.
Federal income tax only. Social Security and Medicare still come out of every overtime dollar, and you can claim the deduction whether you itemize or take the standard deduction. Your employer reports the qualifying premium on your W-2.
New York State has not adopted the federal overtime deduction. Your NY State return — plus NYC resident tax or the Yonkers surcharge — taxes your full overtime pay anyway. That is exactly why this calculator’s take-home figures tax every overtime dollar completely, and why the potential federal deduction appears only as a separate info line.
One more practical note: the deduction is claimed when you file, not in your withholding. Unless you submit a new Form W-4 reflecting it, your overtime is withheld at your regular rate all year and the savings arrive as part of your refund.
Overtime Calculator FAQs
How is my overtime pay calculated?
With the 1.5× rule: (hourly rate × regular hours) + (hourly rate × 1.5 × overtime hours) = weekly gross. Annualized gross is weekly gross × 52. Your take-home then comes from the same verified 2026 engine as our other calculators: 2026 federal brackets and $16,100 standard deduction (single), 2026 NY State brackets, NYC resident tax or the 16.75% Yonkers surcharge where applicable, plus FICA.
Is the 2025–2028 federal overtime deduction included in my take-home?
No — and that is deliberate. The deduction is claimed when you file your federal return, not in your paycheck withholding, and it is capped ($12,500) and phased out above $150,000 of income. The calculator shows your potential federal deduction as a separate info line so you can see both numbers honestly.
Does New York tax my overtime pay?
Yes — in full. New York State has not conformed to the federal overtime-premium deduction, so your state return taxes every overtime dollar. If you live in New York City you also owe NYC resident tax on it, and Yonkers residents owe the 16.75% city surcharge on the state tax.
I am salaried. Can I still use this calculator?
Only if you are nonexempt under FLSA and NY rules — overtime law depends on your duties and pay, not your title. Many salaried professionals and managers are exempt and earn no legal overtime. If you are unsure how your pay structure compares, see hourly vs. salary after taxes.
Why does my location change the result so much?
Because local taxes stack on top of state tax. A New York City resident pays the NYC resident income tax on top of NY State tax; a Yonkers resident pays an extra 16.75% of their state tax. Run the same hours through our custom salary breakdown tool to compare all three locations side by side.
How accurate are these figures?
Our engine matches the official 2026 IRS, NY State, and NYC worksheets to the cent for a single filer taking the standard deduction with no pre-tax deductions. Real paychecks differ if you have 401(k) contributions, health premiums, tax credits, or additional income — and if your hours vary week to week, since we annualize 52 identical weeks.
Is my pay data stored anywhere?
No. Everything is calculated instantly in your browser — your rate and hours never leave your device and nothing is saved or sent to our servers.
Transparent calculations. Official sources.
2026 IRS Rev. Proc. 2025-32, NY State/NYC schedules, SSA wage base, NY DOL wage orders. Reviewed October 16, 2026. Estimates only, not tax advice. Methodology →
Have a salary too — or irregular bonuses?
Model any annual salary with deductions in the custom breakdown tool, or see how bonus withholding works in NYC.
Open the Custom Breakdown Tool →