Calculate your net take-home earnings from hourly wages, overtime hours, federal taxes, and state withholdings.
An hourly paycheck calculator estimates how much of your gross pay you may take home after federal income tax, FICA taxes, state and local taxes, and applicable payroll deductions.
When you earn a set wage like $25 an hour, your take-home pay is generally lower than your gross earnings after mandatory withholdings and benefits are deducted. This tool crunches the numbers for your pay schedule so you can plan your budget before payday.
To get an accurate estimate, enter the key numbers from your standard pay cycle:
State: Select the state where you work so the calculator applies your local tax rules (or zero income tax if your state does not tax wage income).
Pay Frequency: Choose how often you get paid—Weekly (52 checks/year), Bi-Weekly (26 checks/year), Semi-Monthly (24 checks/year), or Monthly (12 checks/year).
Filing Status: Pick Single, Married, or Head of Household to align with your Form W-4.
Hourly Wage Rate: Type in your regular base pay per hour (e.g., $22.50).
Regular Hours Worked: Enter your standard work hours for that specific pay cycle.
Overtime Hours & Multiplier: Add any extra hours beyond your standard schedule, along with your overtime rate (usually 1.5×).
Pre-Tax Deductions (Optional): Add contributions like a Traditional 401(k) or health insurance premiums to see how pre-tax savings reduce your taxable income.
Dependents & Extras: Enter W-4 dependent tax credits, bonuses, commissions, or local city taxes under Advanced Options.
Calculating an hourly paycheck involves three main steps: figuring out your regular earnings, adding overtime pay, and subtracting taxes and deductions.
Regular earnings are calculated by multiplying your hourly rate by the regular hours worked:
Regular Pay = Hourly Wage Rate × Regular Hours Worked
For covered nonexempt employees under federal law, overtime rules generally apply to hours worked over 40 in a workweek.
Example: If you earn $20 per hour and work 40 regular hours in a week:
$20 × 40 = $800.00 regular gross pay
Overtime Pay = Overtime Hours × (Hourly Wage Rate × Overtime Multiplier)
Example: If you work 6 overtime hours at a 1.5× rate on a $20/hour wage:
$20 × 1.5 = $30.00 OT rate
6 hours × $30.00 = $180.00 overtime gross pay
Net Take-Home Pay = Total Gross Pay − (Pre-Tax Deductions + Federal Tax + FICA + State/Local Tax + Post-Tax Deductions)
Overtime for hourly employees is largely governed by the Fair Labor Standards Act (FLSA):
The 40-Hour Workweek Standard: Federal overtime rules are based on a fixed 7-day workweek. Working more than 40 hours during that 7-day period triggers overtime requirements for covered workers.
The 1.5× Overtime Rate: Covered nonexempt employees must receive at least 1.5 times their regular hourly rate for hours worked beyond 40.
Overtime Eligibility: Most hourly employees are classified as nonexempt, meaning they qualify for mandatory overtime pay.
Double Time (2.0×): Federal law does not mandate double-time pay for weekends or holidays. Double time depends on employer policies, union contracts, or specific state rules (such as California daily overtime regulations).
Need to calculate extra shifts before taxes? Use our overtime pay calculator to compute your gross earnings using 1.5× (time-and-a-half), 2.0× (double time), or 1.0× (straight time) rates.
Your paycheck goes through mandatory tax withholdings and optional benefits reductions before reaching your account.
Federal withholding is calculated based on IRS tax brackets and the filing status selected on your Form W-4.
FICA taxes support federal social insurance programs:
Social Security: 6.2% withheld from your taxable wage base up to the annual statutory limit.
Medicare: 1.45% withheld on all taxable wages, plus an additional 0.9% surtax on individual earnings exceeding $200,000.
No-Tax States: States with no individual state income tax on wages include Texas and Florida.
Flat or Progressive Tax States: Most states apply flat rates or tiered tax brackets depending on income (such as Arizona, Georgia, and North Carolina). You can select your state from our supported states list in the calculator above to apply local withholding rules.
Local Taxes: Some cities and counties (notably in Ohio and Pennsylvania) also require local payroll tax withholdings.
Pre-Tax Deductions: Traditional 401(k) contributions and Section 125 health insurance plans reduce your gross earnings before taxes are calculated.
Post-Tax Deductions: Wage garnishments or Roth retirement contributions come out after all taxes have been computed.
Understanding how hourly compensation compares to salaried employment helps when reviewing job offers or changing roles.
| Feature | Hourly Pay | Salaried Pay |
|---|---|---|
| Overtime | Covered nonexempt employees generally receive overtime after 40 hours/week | May be exempt or nonexempt depending on FLSA duty and salary tests |
| Pay Consistency | Can vary directly with the number of hours worked | Usually a fixed salary amount per pay period |
| Time Tracking | Hours are generally tracked for payroll accuracy | Tracking requirements vary by role, policy, and employer |
| Federal Tax | Follows the standard federal income-tax system | Follows the standard federal income-tax system |
If you are transitioning to an annual contract or want to compare fixed yearly earnings, estimate your take-home pay using our salary paycheck calculator.
At 40 hours per week, $20/hour produces $800 in gross weekly pay, or $41,600 in annual gross pay before taxes. Your actual take-home pay depends on your state, filing status, W-4 information, deductions, and other payroll circumstances. Use our calculator above to estimate your personalized net check.
Assuming 40 hours per week and 52 paid weeks per year (2,080 total paid hours), your annual gross earnings at $25 an hour are:
No. Overtime is not subject to a separate or special federal “overtime tax.” It is taxed as ordinary income under standard tax brackets. However, because a larger paycheck pushes that specific pay period into a higher withholding calculation, your payroll software might withhold a slightly higher percentage for that check. Any difference settles when you file your annual tax return.
Pre-tax benefits (such as qualifying health insurance premiums and Traditional 401k contributions) are taken out before federal income tax is applied, reducing your overall taxable income base.
Under federal rules, working on Saturday or Sunday does not automatically trigger overtime pay. Overtime is based strictly on whether your total hours exceed 40 during your employer’s established 7-day workweek, unless an employment contract or state law requires otherwise.