How do I calculate time-and-a-half (1.5x) pay?

Multiply your regular hourly rate by 1.5. At $20/hour, your time-and-a-half rate is $30/hour ($20 base rate + $10 half-time premium). If you work 45 hours in a standard 40-hour federal workweek, your gross pay is (40 × $20) + (5 × $30) = $800 + $150 = $950.

Does paid time off (PTO), vacation, or holiday leave count toward the 40-hour overtime threshold?

No. Under the federal Fair Labor Standards Act (FLSA) and California general law, overtime is based strictly on hours actually worked. If you work 36 hours and take 8 hours of paid PTO (44 total paid hours), all 44 hours are paid at straight time unless your employer's policy or union contract specifically counts PTO as hours worked.

How does California daily overtime and double time work?

Under California's general rule for non-exempt employees, employers must pay 1.5x time-and-a-half for hours worked over 8 up to 12 in a single workday, for the first 8 hours worked on the 7th consecutive day in a workweek, and for straight-time hours exceeding 40 in a workweek. Double time (2.0x) applies to hours worked over 12 in a single workday and over 8 hours on the 7th consecutive workday.

What are the new 2027 salaried overtime-exempt thresholds in California and Washington?

While the federal FLSA salary threshold remains $684/week ($35,568/year), several states enforce much higher exempt salary floors that rise on January 1, 2027: California rises to $72,384/year ($1,392/week, tied to 2x the $17.40/hr state minimum wage), and Washington rises 15% to $92,196/year ($1,773/week for employers with 51+ workers, or $82,976.40/year for 1–50 workers). Salaried workers paid below their applicable threshold are generally entitled to 1.5x overtime pay.

How much of my time-and-a-half pay qualifies for the 2026–2027 'No Tax on Overtime' deduction?

Under IRC §225 (claimed on Schedule 1-A), only the federally required 0.5x half-time premium for hours worked over 40 in a workweek qualifies—not the full 1.5x overtime pay, and not California daily overtime hours worked under the 40-hour weekly threshold. Starting with 2026 W-2s (issued in January 2027), employers report this 0.5x premium in Box 12, code TT.

Free U.S. Weekly Overtime & 2027 Threshold Tool

Overtime Calculator: Time-and-a-Half (1.5×), Double Time & PTO

Calculate your weekly gross pay, 1.5× time-and-a-half rate, and 2.0× double-time pay using Quick Hours or a full 7-day time card. Compare Federal 40-hour vs. California daily overtime rules, check 2027 salaried exempt thresholds, and see your W-2 Box 12 Code TT tax-deductible overtime premium.

✔️ Quick Hours + 7-Day Time Card ✔️ Federal 40h & California Daily OT ✔️ 2027 Exempt Salary Cliff Check ✔️ W-2 Box 12 Code TT Bridge

Last verified: October 17, 2026 · Checked against DOL FLSA Fact Sheet #23, CA DLSE Overtime Rules, and IRS Fact Sheet FS-2026-13.

Calculate your weekly overtime pay & 1.5× rate

Pick Quick Weekly Hours for instant math, 7-Day Time Card for shift logs, or 2027 Exempt Salary Check.

● Live Calculator

⚡ 1. Quick Weekly HoursType regular, 1.5× OT & 2× hours directly 🗓️ 2. 7-Day Time CardDaily clock-in/out & California daily OT ⚖️ 3. 2027 Exempt Salary CheckCheck if your salary qualifies for OT in 2027

Step 1: Base Pay Rate, Overtime Rule & PTO

Base hourly pay ($/hr) 1.5× rate = $37.50/hr · 2.0× rate = $50.00/hr

Overtime rule to model California mode automatically splits >8h (1.5×) and >12h (2×) in Time Card view.

Paid PTO / holiday hours this week Added to gross pay, but excluded from the 40-hour overtime threshold.

PTO hourly rate ($/hr) Defaults to your base hourly rate unless edited.

Weekly bonus / shift differential ($) Nondiscretionary bonuses raise your legal FLSA regular rate across worked hours.

Employer workweek starts on Fixed 168-hour employer workweek boundary.

Federal FLSA baseline: non-exempt employees earn 1.5× their regular rate for hours actually worked over 40 in a fixed workweek.

Step 2: Enter Weekly Hours Worked (Quick Mode)

Regular straight-time hours (1.0×) Standard full-time workweek is 40.00 hours.

Time-and-a-half overtime hours (1.5×) Hours worked over 40/week (or >8h/day in CA).

Double-time hours (2.0×) CA >12h/day, 7th-day >8h, or holiday/contract 2× hours.

Step 2: Weekly 7-Day Time Card (Clock In/Out or Daily Override)

Workday	Clock In	Clock Out	Unpaid Break (min)	Manual Hours Override	Worked Hrs
Mon					0.00
Tue					0.00
Wed					0.00
Thu					0.00
Fri					0.00
Sat					0.00
Sun					0.00

Step 2: 2027 Salaried Overtime-Exempt Threshold Checker

Salaried workers paid below their state or federal exempt salary threshold must generally be paid 1.5× overtime—even if their job title says “Manager.” Enter your annual salary and state rule below:

Your Annual Base Salary ($/year) Equivalent hourly rate (2,080 hrs/yr): $32.69/hr

2027 State / Federal Exempt Threshold Rule

Weekly Hours You Actually Work If non-exempt, hours over 40 trigger 1.5× overtime pay.

Step 3: Optional Withholding & Deductions (Take-Home Check)

Estimated tax withholding ($)

Benefits / 401(k) / HSA deductions ($)

Live Paycheck & Tax Verdict

Estimated Weekly Gross Pay

Includes worked hours, overtime premiums & PTO

$1,375.00

50.00 hours worked (40.00 reg + 10.00 OT)

50.00Hours Worked

40.00Regular (1.0×)

10.00Time & Half (1.5×)

0.00Double Time (2.0×)

Regular straight-time pay (1.0×)	$1,000.00
Time-and-a-half pay (1.5×)	$375.00
Double-time pay (2.0×)	$0.00
Bonus / shift differential entered	$0.00
FLSA blended regular-rate OT adjustment	$0.00
Paid PTO / leave pay	$0.00
Estimated Weekly Gross Pay	$1,375.00
Entered tax withholding	$0.00
Other benefit deductions	$0.00
Estimated Take-Home Pay	$1,375.00

⏱️ 2026–2027 W-2 Box 12 Code TT (IRC §225)

$125.00 / wk deductible premium

At 50 weeks/yr, that equals $6,250/yr in Code TT deduction (saving ~$1,375/yr in federal tax at the 22% bracket). Only the 0.5× FLSA half-time portion over 40 hrs/week counts. Calculate My Full Code TT Tax Refund →

Effective FLSA regular rate: $25.00/hr (1.5× = $37.50/hr). PTO is excluded from hours-worked thresholds.

Quick Reference: Time-and-a-Half (1.5×) & Double-Time (2.0×) Pay Rates

Time-and-a-half means 1.5 times your FLSA regular hourly rate, which consists of your 1.0× base hourly wage plus a 0.5× overtime premium. That 0.5× half-time premium is the exact portion employers report in Form W-2, Box 12, code TT for the 2025–2028 federal overtime tax deduction:

Base Hourly Rate (1.0×)	Time-and-a-Half Rate (1.5×)	Deductible 0.5× Premium (Code TT / Hr)	Double-Time Rate (2.0×)	45-Hr Week Gross Pay (5h OT)	50-Hr Week Gross Pay (10h OT)
$18.00/hr	$27.00/hr	$9.00/hr	$36.00/hr	$855.00	$990.00
$20.00/hr	$30.00/hr	$10.00/hr	$40.00/hr	$950.00	$1,100.00
$25.00/hr	$37.50/hr	$12.50/hr	$50.00/hr	$1,187.50	$1,375.00
$30.00/hr	$45.00/hr	$15.00/hr	$60.00/hr	$1,425.00	$1,650.00
$35.00/hr	$52.50/hr	$17.50/hr	$70.00/hr	$1,662.50	$1,925.00
$40.00/hr	$60.00/hr	$20.00/hr	$80.00/hr	$1,900.00	$2,200.00
$45.00/hr	$67.50/hr	$22.50/hr	$90.00/hr	$2,137.50	$2,475.00

💡 How the FLSA Blended Regular Rate Works When You Earn a Bonus: Under DOL Regular Rate Rules, if you earn $20/hour, work 50 hours, and receive a $100 nondiscretionary production bonus that week, your regular rate is not $20.00/hr—it rises by $2.00/hr ($100 ÷ 50 hours = $22.00/hr). Your employer owes an extra $1.00/hr ($2.00 × 0.5) on each of your 10 overtime hours. Our calculator computes this adjustment automatically when you enter a weekly bonus or shift differential.

Federal 40-Hour Overtime vs. California Daily Overtime & Double Time

The federal Fair Labor Standards Act (FLSA) triggers overtime strictly after 40 hours actually worked in a fixed 7-day workweek. California adds daily and seventh-consecutive-day thresholds without pyramiding (counting the same hour twice):

Overtime Rule Element	Federal FLSA Weekly Baseline	California General Non-Exempt Rule
Time-and-a-Half (1.5×) Trigger	Hours worked over 40 in a workweek.	Hours worked over 8 up to 12 in a workday, first 8 hours on the 7th consecutive workday, and straight-time hours over 40 in a workweek.
Double Time (2.0×) Trigger	Not required by federal law (contract/policy only).	Hours worked over 12 in a workday, and hours over 8 on the 7th consecutive workday in a workweek.
Paid PTO / Vacation / Sick Leave	Paid at straight time; does not count as hours worked toward the 40-hour threshold.	Paid at straight time; does not count as hours worked toward daily or weekly thresholds.
IRC §225 (“No Tax on Overtime”) Eligibility	The 0.5× premium on hours over 40/week qualifies for W-2 Box 12 Code TT.	Only the 0.5× premium on hours that exceed 40 in the workweek qualifies; daily-only OT under 40 weekly hours does not.

January 1, 2027 Salaried Overtime-Exempt Threshold Cliffs (WA, CA, NY, CO & Federal)

Being paid a salary does not automatically make you exempt from time-and-a-half overtime. To be classified as an overtime-exempt Executive, Administrative, or Professional (EAP) employee, you must pass both a job-duties test and a minimum salary threshold test. On January 1, 2027, state salary thresholds jump sharply in several major states:

Jurisdiction	2027 Minimum Exempt Salary (Annual)	2027 Weekly Minimum	What Happens If You Are Paid Below This Line?
Washington (51+ Employees)	$92,196.00 / yr (2.5× state min wage)	$1,773.00 / wk	Must be reclassified as non-exempt and paid 1.5× overtime for hours over 40/week starting Jan 1, 2027.
Washington (1–50 Employees)	$82,976.40 / yr (2.25× state min wage)	$1,595.70 / wk	Must be paid 1.5× overtime for hours over 40/week unless salary is raised to at least $82,976.40.
California (All Employers)	$72,384.00 / yr (2× $17.40/hr min wage)	$1,392.00 / wk	Entitled to California daily (1.5× after 8h, 2× after 12h) and weekly overtime starting Jan 1, 2027.
New York (NYC, Long Island & Westchester)	$66,300.00 / yr	$1,275.00 / wk	Must receive 1.5× overtime for hours over 40/week if paid below the regional threshold.
Federal FLSA Baseline (TX, FL, OH, PA, etc.)	$35,568.00 / yr	$684.00 / wk	Federal floor across states without a higher state-level EAP salary threshold.

⚠️ Important Distinction Between Overtime Pay and the 2026–2027 Tax Deduction: When you earn 1.5× time-and-a-half, your employer pays you 150% of your base rate on your paycheck. However, for the federal No Tax on Overtime Deduction (W-2 Box 12 Code TT), only the 0.5× half-time premium (one-third of your 1.5× overtime pay) for hours over 40 in a workweek is deductible on Schedule 1-A.

Frequently Asked Questions: Time-and-a-Half & Overtime Rules

How do I calculate time-and-a-half (1.5×) for my hourly wage?

Multiply your regular hourly wage by 1.5. For example, if you earn $25.00/hour, your time-and-a-half overtime rate is $37.50/hour ($25.00 straight time + $12.50 half-time premium). If you work 10 overtime hours beyond 40 in a week, your overtime pay is 10 × $37.50 = $375.00.

Does PTO or holiday pay count toward the 40 hours needed for overtime?

No. Under the federal FLSA and California law, overtime thresholds (40 hours/week or 8 hours/day) count only hours you actually worked. If you work four 9-hour shifts (36 hours worked) and take 8 hours of paid PTO (44 total paid hours), all 44 hours are paid at your regular 1.0× rate unless your employer voluntarily offers a more generous policy.

How does the calculator avoid double-counting California daily and weekly overtime?

In California mode (7-Day Time Card view), the calculator first separates daily hours worked up to 8 as straight time, hours over 8 up to 12 as 1.5× daily overtime, and hours over 12 as 2.0× double time (plus 7th-consecutive-day rules if all 7 days have hours). It then totals only the daily straight-time hours—and reclassifies any straight-time hours above 40 into 1.5× weekly overtime so no hour is ever paid a premium twice.

Can my employer average a 50-hour week and a 30-hour week across a biweekly paycheck?

No. Under 29 CFR §778.104 (FLSA), each 7-day workweek stands alone. If you work 50 hours in Week 1 and 30 hours in Week 2 of an 80-hour biweekly pay period, your employer cannot average them to 40 hours/week—they must pay 10 hours of 1.5× overtime for Week 1.

What happens if my salary is below the January 1, 2027 exempt threshold in WA or CA?

If you are a salaried employee in Washington earning under $92,196/year (at a 51+ employee company) or in California earning under $72,384/year on January 1, 2027, your employer must either raise your base salary to meet the new 2027 exempt threshold or reclassify you as non-exempt and pay 1.5× overtime for all overtime hours worked.

Complete Your 2026–2027 Paycheck & Tax Decision Check

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Disclaimer: Ultimate Info Guide provides educational payroll and tax estimates only. Nothing on this page constitutes legal, tax, or wage-and-hour compliance advice. Actual overtime pay and exempt status depend on your specific job duties, collective bargaining agreements, alternative workweek schedules, and state/local laws. Always verify your pay statement with your payroll department, state labor agency, or a licensed CPA.