CashoutTools / Tipped overtime calculator
Tipped overtime calculator
Overtime for tipped workers is one of the most common pay mistakes. Pick where you work, enter your hours, and see the overtime rate you should be getting.
Why the usual math is wrong
When an employer takes a tip credit, overtime is figured on the full minimum wage, not on your cash wage. The tip credit stays the same in an overtime hour, so the employer has to add half of the minimum wage to your cash wage.
Under federal rules that's $2.13 + half of $7.25 ($3.63) = $5.76 an hour in cash for each overtime hour, not 1.5 × $2.13 = $3.20. In a state with a higher minimum wage the gap is bigger, and the calculator uses your state's or city's rates.
Daily overtime and other state rules
Federal law only requires overtime after 40 hours in a workweek. Some states go further, such as California (over 8 hours in a day), Alaska and Nevada (over 8 hours in a day in many cases) and Colorado (over 12 hours in a day). This calculator uses the weekly rule; follow the link in the results to your state's overtime section for the rest.
Overtime and your taxes
For 2025 through 2028, you can deduct qualified overtime on your federal return: the extra "half" of time-and-a-half, up to $12,500 a year ($25,000 on a joint return). It phases out above $150,000 of income ($300,000 joint). The results show that premium for the week. It's separate from the No Tax on Tips deduction, and you can take both.
If your employer has been paying overtime wrong, you can recover the difference. Your state page explains where to file a wage claim.
