How do you calculate annual salary from an hourly rate?

Assuming a standard 40-hour workweek and 52 work weeks per year (2,080 working hours total), multiply your hourly wage by 2,080. For example, $25 per hour equals $52,000 per year before overtime or deductions.

What is the FLSA rule for overtime pay in the US?

Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half (1.5x) their regular rate of pay.

Is overtime taxed at a higher rate on your paycheck?

Overtime is taxed at the exact same statutory income tax rate as regular earnings. However, because automated payroll withholding software annualizes individual paychecks, a larger check with heavy overtime may temporarily have taxes withheld at a higher marginal bracket. Any excess withheld is refunded when filing your annual IRS tax return.

Hourly to Salary & Overtime Paycheck Calculator (2026)

Hourly Wage & Schedule

Hourly Base Pay Rate ($/hr)

Regular Hours / Week Standard full-time is 40.

Overtime Hours / Week Hours worked past 40.

Overtime Multiplier

Work Weeks / Year

Estimated Deductions & Taxes

Estimated Effective Tax Withholding Includes Federal Income Tax + 7.65% FICA (Social Security & Medicare) + State Tax.

Monthly Benefits & Pre-Tax Deductions ($)

Health insurance premiums, 401(k) contributions, or HSA deductions per month.

Annual Gross Salary

Take-Home: $0

Bi-Weekly Paycheck

Take-Home: $0

Overtime Hourly Rate

$45.00

At 1.5x multiplier

Annual Earnings Composition

2,496 Total Hours/Yr

Pay Period Conversion Schedule

Pay Frequency	Regular Pay	Overtime Pay	Total Gross	Est. Take-Home
Hourly	$30.00	$45.00	—	—
Weekly (52x)	$0	$0	$0	$0
Bi-Weekly (26x)	$0	$0	$0	$0
Monthly (12x)	$0	$0	$0	$0
Annual (1 Year)	$0	$0	$0	$0

How Hourly Wages and Overtime Work Under US Law

Under the Fair Labor Standards Act (FLSA), hourly non-exempt workers receive a legal premium for extra hours worked. Understanding how overtime compounds into an annual salary is critical for budgeting:

Standard Full-Time Baseline 40 hours per week × 52 weeks = 2,080 annual working hours. A $30/hour worker earns a base of $62,400 per year before overtime.

Time and a Half (1.5x) Any hours worked beyond 40 in a 7-day workweek must be paid at 1.5x the standard rate. At $30/hr base, overtime is paid at $45.00/hour.

Frequently Asked Questions

How many working hours are in a year?

A standard full-time employee working 40 hours per week works 2,080 hours per year (52 weeks × 40 hours). If you take 2 weeks of unpaid time off, your annual working hours decrease to 2,000 (50 weeks × 40 hours).

Why does overtime look like it gets taxed more?

Overtime is not taxed at a higher legal tax rate. However, employer payroll software assumes every paycheck you receive will be that large for the entire year, which can push that single check into a higher withholding bracket. Any extra taxes withheld are credited back to you as a tax refund.