Date & Time · Guide
How Much Is Time and a Half? Overtime Pay Explained
Multiply your rate by 1.5. Then multiply by your overtime hours. Here is everything around those two steps.
Want the answer for your own numbers? Use the free Time Calculator — it does every step below for you.
Time and a half in one sentence
Time and a half means you earn 1.5 times your normal hourly rate for each overtime hour. If you normally earn $20 an hour, time and a half is $30 an hour.
Time-and-a-half rate = hourly rate × 1.5
Overtime pay = overtime hours × hourly rate × 1.5
Quick table: time and a half for common wages
| Hourly rate | Time and a half | Double time | 5 overtime hours earn |
|---|---|---|---|
| $12.00 | $18.00 | $24.00 | $90.00 |
| $15.00 | $22.50 | $30.00 | $112.50 |
| $16.50 | $24.75 | $33.00 | $123.75 |
| $18.00 | $27.00 | $36.00 | $135.00 |
| $20.00 | $30.00 | $40.00 | $150.00 |
| $25.00 | $37.50 | $50.00 | $187.50 |
| $30.00 | $45.00 | $60.00 | $225.00 |
A shortcut for mental maths: take half your rate and add it on. Half of $18 is $9, so time and a half is $27.
How to figure out a full week with overtime
Example: 46 hours at $18 an hour
Regular pay: 40 hours × $18 = $720.
Overtime pay: 6 hours × $27 = $162.
Total for the week: $882
Without overtime pay, the same 46 hours would earn only $828. The extra $54 is the "half" in time and a half.
Part hours: convert to decimals first
Overtime of 3 hours 20 minutes is 3.33 hours, not 3.20. Divide the minutes by 60. Then multiply by your overtime rate. At $27 an hour, that is 3.33 × $27 = $90. The time calculator gives decimal hours for any clock times.
When do you get time and a half? (US rules)
- Federal law (FLSA): non-exempt employees earn at least time and a half for hours over 40 in a workweek.
- Daily overtime: a few states go further. California, for example, generally pays time and a half after 8 hours in a day and double time after 12.
- Holidays and weekends: federal law does not require extra pay for these. Any holiday premium comes from your contract or employer policy.
- Salaried "exempt" staff usually do not get overtime. Whether you are exempt depends on your duties and pay, not just your job title.
Rules outside the US differ widely. Check your contract and your local labour authority.
Bonuses and shift pay can raise your overtime rate
Under US federal rules, overtime is based on your regular rate, not just your base wage. Most shift differentials and many non-discretionary bonuses — ones promised for hitting a target — are included. If you earn $18 an hour plus a $1 night differential, your regular rate is $19, so overtime is $28.50, not $27.
Time and a half vs double time
Double time is 2 times your rate. It is less common and usually comes from a union contract, a state rule like California's 12-hour rule, or a holiday policy. On $20 an hour, double time is $40.
Does overtime get taxed more?
Payroll does not use a special rate. Overtime is withheld like any other pay. A big overtime week can make it look like more tax was taken, because payroll systems estimate tax as if you earned that much every week. Any over-withholding comes back when you file your return.
New US federal deduction. Starting with 2025 tax returns, many workers can deduct the premium part of their overtime — the pay above their regular rate, for overtime required by federal law — from federal taxable income. The deduction is capped at $12,500 a year ($25,000 on a joint return) and phases out above $150,000 of modified adjusted gross income ($300,000 joint). Married couples must file jointly to claim it. In the 46-hour example above, the deductible part is 6 × $9 = $54, not the full $162. It lowers federal income tax only — payroll still withholds as usual. The rules are new, so check the IRS guidance or a tax professional for your own situation.
What overtime adds up to over a year
Small weekly amounts grow quickly. Here is time-and-a-half pay over 50 working weeks:
| Hourly rate | 2 OT hours a week | 5 OT hours a week | 10 OT hours a week |
|---|---|---|---|
| $15 | $2,250 | $5,625 | $11,250 |
| $20 | $3,000 | $7,500 | $15,000 |
| $25 | $3,750 | $9,375 | $18,750 |
Before tax. Track your hours carefully — a few unpaid overtime hours a week can cost thousands a year.
Frequently asked questions
Time and a half on $15 is $22.50 an hour. Multiply $15 by 1.5. Five overtime hours at that rate earn $112.50.
Multiply your hourly rate by 1.5 to get the overtime rate, then multiply by the overtime hours in decimal form. At $20 an hour, 4.5 overtime hours earn 4.5 × $30 = $135.
Not under US federal law. The FLSA only requires overtime pay for hours over 40 in a workweek. Holiday premiums come from employer policy or contracts.
$30 an hour. Five overtime hours at that rate earn $150 on top of your regular pay.
Under US federal law, not necessarily — overtime is based on hours over 40 in a workweek, not per day. A few states, including California, also require daily overtime, generally after 8 hours in a day.
Sources and further reading
- US Department of Labor — Overtime pay — federal overtime rules under the FLSA
- California Labor Commissioner — Overtime FAQ — daily overtime and double time
- IRS — What to know about the No Tax on Overtime deduction — limits, phase-out and who can claim it