Hourly Paycheck Calculator

How to Use the Hourly Paycheck Calculator

Our free hourly paycheck calculator helps you estimate your take-home pay based on an hourly wage. To use it, convert your hourly rate to an annual salary by multiplying your hourly rate by your weekly hours, then by 52 weeks. For example, $20 per hour at 40 hours per week equals $41,600 annually. Enter this amount, select your state tax level and pay frequency (weekly is most common for hourly workers), and the calculator will break down your per-paycheck net pay, annual totals, and all deductions.

Understanding your real take-home pay is essential for budgeting, especially for hourly workers whose income can vary with hours worked. This calculator shows exactly how much of each paycheck goes to federal tax, state tax, Social Security, and Medicare, so you can plan your finances accurately whether you work full-time, part-time, or pick up overtime hours.

Calculating Hourly Pay to Annual Salary

The standard conversion formula is simple: hourly rate multiplied by hours per week multiplied by 52 weeks per year. A $15 per hour wage at 40 hours per week equals $31,200 annually. At $20 per hour, that becomes $41,600. At $25 per hour, $52,000. At $30 per hour, $62,400. If you work fewer than 40 hours or take unpaid time off, reduce the number of weeks accordingly. For part-time workers at 20 hours per week, the annual equivalent is halved.

Understanding Overtime Pay

Under the Fair Labor Standards Act (FLSA), non-exempt hourly employees must receive overtime pay at 1.5 times their regular rate for all hours worked beyond 40 in a workweek. Some states have stricter rules, such as California, which requires overtime after 8 hours in a single day. Overtime pay is taxed the same way as regular wages — it does not push you into a higher bracket on that specific pay, but it does increase your total annual income, which may affect your overall tax liability.

Part-Time vs. Full-Time: Tax Implications

Federal tax law does not distinguish between part-time and full-time employment. Both are taxed identically based on total annual earnings. However, part-time workers earning less may benefit from lower tax brackets and a higher percentage of their standard deduction relative to income. Part-time workers who earn less than $14,600 (the 2024 standard deduction for single filers) may owe no federal income tax at all, though FICA taxes still apply to every dollar earned.

Hourly Rate to Annual Net Pay Reference

This reference table converts common US hourly rates to annual gross pay (at 40 hours/week × 52 weeks) and approximate net take-home for a single filer claiming the standard deduction, medium state tax (~5%), and no pre-tax deductions. Use your state's actual rate for a tighter estimate; the calculator above handles the math precisely when you enter your own inputs.

State-free states (TX, FL, NV, WA, TN, SD, WY, AK) add ~4-6% more to net. High-tax states (CA, NY, OR, HI) shave roughly 3-5% off.

Overtime Take-Home — Concrete Examples

Overtime hours earn 1.5× your base rate but withholdings apply normally. A worker at $20/hr who takes 5 OT hours per week adds $30 × 5 × 52 = $7,800 gross per year; after taxes roughly $5,600 hits the bank — about $108 extra per biweekly check. At 10 OT hours weekly, gross climbs by $15,600 and net by roughly $10,900 (~$420 per biweekly check). Stacking beyond that pushes you into higher federal brackets and the additional Medicare surtax kicks in past $200k, so the marginal return per OT hour drops as you pile them on.

Frequently Asked Questions

How do I calculate take-home pay from my hourly wage?

To calculate take-home pay, first determine your gross pay by multiplying your hourly rate by hours worked. Then subtract federal income tax (based on annual equivalent income and tax brackets), state income tax, Social Security (6.2%), and Medicare (1.45%). For example, at $20/hour working 40 hours/week, your gross annual equivalent is about $41,600, and your net pay after all deductions is typically 70-80% of gross.

How is overtime pay calculated?

Under federal law (FLSA), overtime is paid at 1.5 times your regular hourly rate for hours worked beyond 40 in a workweek. Some states have additional rules, like daily overtime after 8 hours (California). For example, if your regular rate is $20/hour, overtime pays $30/hour. Overtime pay is subject to the same tax withholdings as regular pay.

What is the difference between part-time and full-time for tax purposes?

For federal tax purposes, there is no legal distinction between part-time and full-time workers — both are taxed the same way based on total annual income. However, the ACA defines full-time as 30+ hours per week for employer health insurance requirements. Part-time workers earning less may fall into lower tax brackets, resulting in a lower effective tax rate on each paycheck.

How do I convert my hourly wage to annual salary?

Multiply your hourly rate by the number of hours you work per week, then multiply by 52 weeks. For a standard 40-hour week: $15/hour = $31,200/year, $20/hour = $41,600/year, $25/hour = $52,000/year, $30/hour = $62,400/year. If you work fewer hours or take unpaid time off, adjust the weeks accordingly.

Do I still pay Social Security and Medicare on hourly wages?

Yes, all hourly wages are subject to FICA taxes: 6.2% for Social Security (up to the wage base of $168,600 in 2024) and 1.45% for Medicare (on all wages, plus 0.9% additional Medicare tax on wages over $200,000). Your employer matches these amounts, paying an equal 7.65% on your behalf.