Hourly pay after taxes
Yearly take-home pay at 40 hours a week for a single filer paid every two weeks, with no 401(k) or other deductions. Texas has no income tax, Illinois has one flat rate and California has graduated rates.
| Hourly wage | Gross a year | Take-home, Texas | Take-home, Illinois | Take-home, California |
|---|---|---|---|---|
| $15.00 | $31,200 | $27,249 | $25,850 | $26,598 |
| $18.00 | $37,440 | $32,263 | $30,555 | $31,296 |
| $20.00 | $41,600 | $35,606 | $33,691 | $34,418 |
| $25.00 | $52,000 | $43,962 | $41,533 | $42,126 |
| $30.00 | $62,400 | $52,318 | $49,374 | $49,724 |
| $40.00 | $83,200 | $67,361 | $63,388 | $62,787 |
| $50.00 | $104,000 | $81,994 | $76,991 | $75,215 |
Your own state changes the last columns. The paycheck calculator for each state shows the same table with that state's tax, and the calculator above has every state and the main city and county taxes.
How to calculate your hourly paycheck
- Multiply your hourly wage by your regular hours in the pay period.
- Add overtime hours at 1.5 times your wage, and double-time hours at 2 times.
- Add tips you reported and any bonus or commission. That total is gross pay.
- Subtract pre-tax deductions such as a 401(k) or health insurance.
- Subtract federal income tax, Social Security (6.2%), Medicare (1.45%), and state and local tax. The rest is your net pay.
How overtime is taxed
Overtime is taxed the same as regular pay. The Fair Labor Standards Act requires 1.5 times your regular rate for hours over 40 in a workweek. Some states, such as California, also require overtime after 8 hours in a day and double time after 12.
Withholding can still jump on an overtime check. At $25.00 an hour, 10 overtime hours a week add $750.00 to a two-week check, and federal withholding rises by $109.23. That is because the IRS tables treat each paycheck as if you earned it all year. If the overtime stops, the extra comes back when you file.
No tax on overtime and tips
For 2025 through 2028, federal law lets workers deduct the overtime premium and qualified tips on their tax return. The overtime deduction covers only the extra half in time-and-a-half, up to $12,500 a year, or $25,000 on a joint return. The tips deduction is up to $25,000. Both shrink once modified adjusted gross income passes $150,000 ($300,000 joint).
The deduction lowers federal income tax only. Social Security, Medicare and most state income taxes still apply. Your employer keeps withholding as before unless you add the deduction on Form W-4 Step 4(b). The calculator estimates the deduction when you enter overtime or tips, and it can add the amount to Step 4(b) for you.
How tips are taxed
Tips you report to your employer are wages. Your employer withholds income tax, Social Security and Medicare on them, usually out of your regular wages because the cash never passes through payroll. A one-time bonus is different: employers often withhold a flat 22% on it, which the bonus tax calculator shows. Report every tip of $20 or more a month to your employer, as the IRS tip rules require.
Hourly to salary
Full time is 2,080 hours a year, so an hourly wage times 2,080 is the matching salary. $25.00 an hour is $52,000 a year. The salary to hourly calculator converts either way and shows daily, weekly and monthly pay. If you are paid a salary, the salary paycheck calculator starts in salary mode, and the paycheck calculator page explains every tax in more depth.