You worked the extra Saturday. Your overtime calculator says you earned $400. So why does your bank account only show about $250 of it? Because every overtime calculator on Google’s first page shows you gross pay — the fantasy number — while the real number, your take-home pay, hides behind federal taxes, FICA, and state deductions. Nobody tells you that each overtime hour is taxed at your highest marginal rate, or that a $300 shift might net you barely $200. This guide follows your overtime money from gross to take-home, helps you decide if that extra shift is actually worth it, and shows you the state rules and salary traps the other pages gloss over. Because the question you are really asking is not about gross pay — it is whether this extra shift is worth your Saturday — and only the take-home number can answer that.
Quick Answer: US overtime is 1.5× your regular rate past 40 hrs/week. But your gross overtime isn’t your money — after taxes and FICA, you keep roughly 65–75% of it.
Is This Shift Worth It?
The quick math: take your overtime gross (hours × rate × 1.5), then subtract roughly 22% federal tax (varies by bracket), 7.65% FICA, and your state tax (0–13%). A $300 gross overtime shift typically nets $195–$225. Worth it? Only you can say — but now you’re deciding with the real number.
Where Your Overtime Goes (The Waterfall)
Picture $400 of overtime gross: federal income tax takes ~$88, FICA takes ~$31, state tax takes ~$0–$52, and you keep ~$229–$281. Visualizing this waterfall kills the illusion that overtime hours pay like regular hours — each extra hour is taxed at your MARGINAL rate, the highest bracket you touch.
The 7-Day Shift Log (Daily-OT States)
In most states, overtime triggers past 40 weekly hours. But California triggers daily overtime past 8 hours and double time past 12 — plus 8 hours on the 7th consecutive day. Colorado triggers past 12 hours/day. If you work in these states, log clock-in/out per day: a 10-hour Tuesday already earns 2 OT hours even if your week totals under 40.
Salaried? You Might Still Be Owed Overtime
Three quick checks (not legal advice): 1) Do you earn below the FLSA salary threshold? → likely non-exempt, overtime owed. 2) Are your duties primarily non-managerial routine work despite a fancy title? → title doesn’t determine exemption, duties do. 3) Does your employer dock pay for partial-day absences? → that breaks the salary basis. If any check raises a flag, talk to your state labor board — misclassification is rampant.
The Annualizer: What OT Really Adds Up To
10 overtime hours/month at $25/hr base = 10 × $37.50 × 12 = $4,500/year gross, roughly $3,000–$3,400 take-home. That’s a vacation, an emergency fund, or a maxed IRA contribution — framing annual OT as a goal makes the tradeoffs concrete.
Blended Rates: Weekday/Weekend/Holiday
Some employers pay 1.5× weekdays, 2× weekends, 2.5× holidays. Calculate each block separately, then sum: e.g., 4 weekday OT hrs × $30 + 8 weekend hrs × $40 = $120 + $320 = $440 gross. One blended number hides which shifts are actually lucrative — split them.
Conclusion
Gross pay is the number your employer advertises; take-home pay is the number that lands in your life. Every overtime hour you work is taxed at your marginal rate — the highest bracket you touch — which is why that $400 shift quietly becomes $250. Before you trade another weekend, run the waterfall: gross minus federal tax, FICA, and state tax, and ask whether the net figure is worth your time. Check your state’s daily-overtime rules, run the three-question exemption test if you’re salaried, and annualize your overtime to see what it really buys you. Overtime isn’t good or bad — it’s a trade. Now you can price it honestly.
Frequently Asked Questions
How is overtime pay calculated?
Hours over 40/week × 1.5 × regular rate. Some states add daily thresholds.
What is my overtime take-home pay?
Roughly 65–75% of gross after federal tax, FICA, and state tax — it varies by bracket and state.
Do salaried employees get overtime?
If non-exempt, yes. Check the salary threshold and duties tests above.
What is California double time?
2× rate after 12 hours in a day, or after 8 hours on the 7th consecutive workday.
Is overtime taxed more?
It’s taxed at your marginal rate — which feels higher because extra hours stack on top of regular income.
Run your own numbers in the Overtime Pay Calculator. The 1.5× overtime rule itself comes from the Fair Labor Standards Act, enforced by the US Department of Labor.