What is the federal tax rate on overtime pay?

There is no separate federal tax rate for overtime pay. Overtime is taxed at the same rates as your regular wages, so the rate depends on your total income and filing status, anywhere from 10% to 37%. Social Security takes 6.2% and Medicare 1.45% as well, the same as any paycheck.

Withholding can still look heavier on an overtime check. Payroll often treats each check as if it were your usual size, so a big one lands in a higher bracket. Overtime also stacks on your salary, so it comes out at your top bracket, not your average rate.

A single filer on $60,000 paid every two weeks grosses $2,307.69, with $193.08 of federal withholding. Ten overtime hours at $43.27 add $432.70, about $52 of federal tax at this filer's 12% bracket plus $33.10 in FICA. Try the hourly paycheck calculator, and is overtime taxed explains the new deduction.