Overtime, withholding, and take-home pay

Calculate gross overtime before estimating a deposit

Gross overtime is the payment for the overtime hours before deductions. Take-home pay is what remains after the applicable withholding and other deductions. Our overtime-after-tax tool starts with hourly rate × 1.5 × overtime hours, then removes the percentage you enter.

For $28 per hour and 4 overtime hours, gross overtime is $168. A 25% assumption removes $42 and leaves $126. That $126 is a scenario for the overtime portion; it is not a complete paycheck forecast.

A percentage is an assumption, not a tax engine

A single percentage cannot describe all the details used by payroll. Filing status, Form W-4 entries, other income, payroll taxes, state and local taxes, and deductions can affect the amount left on a check. Withholding is an amount paid toward tax during the year, rather than a final determination of tax liability.

The calculator starts at 22% to give an example you can change. That is not a personal recommendation. It does not look up a tax bracket, apply payroll tables, or decide whether a deduction is taken before or after tax.

• Source: IRS Publication 505: tax withholding and estimated tax

Use a pair of checks carefully

Imagine a regular check shows $1,000 gross and $780 net, while another shows $1,180 gross and $900 net. The gross difference is $180 and the deposit difference is $120. The $60 difference between those changes is one-third of the added gross.

That comparison is useful only after you check what else changed. A benefit charge, bonus, reimbursement, unpaid leave, or withholding adjustment can make the deposit difference a poor measure of overtime take-home pay. Do not treat one pair of checks as a permanent tax rate.

1. Compare checks from the same pay schedule and identify the added overtime gross.
2. Inspect each tax and deduction line for changes unrelated to overtime.
3. Use a range of percentage assumptions for planning if the comparison is uncertain.
4. Use an official withholding resource or payroll explanation when you need a full paycheck estimate.

What the qualified overtime deduction changes

The federal qualified overtime deduction is subject to eligibility requirements and limits. It generally relates to the qualifying premium above the regular rate, rather than all overtime wages. The deduction does not make overtime universally exempt from payroll taxes or withholding.

For a simplified $20 rate with an FLSA-required $30 overtime rate, the $10 premium per qualifying hour is different from the full $30 payment. Whether and how much you can deduct depends on the current rules and your circumstances. This website does not calculate that deduction.

Use the IRS's updated guidance for the relevant year, and check your payroll information before changing any tax assumption. The August 2026 FAQ update is linked below so you can read the eligibility and reporting details directly.

• Source: IRS: updated qualified overtime deduction FAQs (August 2026)
• Source: IRS Publication 15: employer tax guide

Turn the estimate into a decision

If you are deciding whether an extra shift fits your budget, compare a conservative take-home scenario with any extra costs. For example, $126 of estimated overtime cash minus $25 of additional transport costs leaves $101 before any other costs. The calculator does not know those expenses, so record them separately.

Keep the assumptions with the result: the rate, hours, percentage, and which expenses you included. That makes the estimate easier to update when the actual pay stub arrives.