How do I convert hourly rate to annual salary?

Multiply hourly rate by 2,080 (40 hrs × 52 weeks). Example: $25/hr = $52,000/year. But actual take-home depends on hours worked, time off, and tax deductions — use the Annual Summary tab for the real number.

Hourly Paycheck Calculator 2026

Q: How much does an hourly worker actually take home?

Most hourly workers take home 70–80% of gross pay. Deductions include federal income tax (10–22% for most), Social Security (6.2%), Medicare (1.45%), and state income tax (0–8%). Pre-tax 401(k) and health insurance also reduce the paycheck.

Q: How is overtime taxed?

Overtime is taxed at your marginal rate — not a special OT rate. Because OT pushes income higher, it may land in a higher bracket. Under OBBBA (2025–2028), the OT premium (the 'half' of time-and-a-half) is deductible up to $12,500/year ($25,000 MFJ), phase-out at $150K MAGI ($300K MFJ).

Q: What is FICA and why is it taken from my paycheck?

FICA funds Social Security (6.2% up to $184,500 in 2026) and Medicare (1.45% on all wages, +0.9% above $200K). Your employer matches your share. Unlike income tax, FICA applies from dollar one with no standard deduction.

Q: Which states have no income tax?

Nine states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Workers in these states only pay federal income tax and FICA.

Your $25/hr job actually pays $19.12/hr after taxes. See your real take-home — with overtime and the new OBBBA deduction.

Hourly rate

Hours per week

Regular hours only (overtime in Tab 2)

Pay frequency

Filing status

State

Take-home per paycheck (biweekly)

$1,690.85

Gross pay$2,000.00

Deductions

Federal income tax−$156.15

Social Security (6.2%)−$124.00

Medicare (1.45%)−$29.00

Summary

Effective tax rate15.5%

Effective hourly rate (after tax)$21.14

2026 withholding tables (Pub 15-T) · SS wage base $184,500 · OBBBA overtime deduction · Updated March 2026

How to Use This Calculator

Tab "My Paycheck"

Enter your hourly rate, hours per week, and pay frequency. The calculator computes federal income tax (using 2026 Pub 15-T withholding tables), FICA (Social Security + Medicare), and state income tax. Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions on your take-home pay.

Tab "Overtime Impact"

See exactly how much extra money OT puts in your pocket. Enter your regular hours and overtime hours — the calculator shows your paycheck with and without OT side-by-side. OT is paid at 1.5× your rate (FLSA), but taxed at your marginal rate. The OBBBA overtime deduction (2025–2028) lets you deduct the OT premium from taxable income — up to $12,500 ($25,000 MFJ). Not available for SSTB employees.

Tab "Annual Summary"

Convert your hourly rate to annual take-home. Set weeks worked per year (50 = two weeks vacation) to see your yearly gross, total taxes, and effective hourly rate — the real number after Uncle Sam takes his cut. Breakdown by month, week, and day included.

The Formulas

Gross Pay:
Regular = Hourly rate × Hours/week × Weeks in pay period
Overtime = Hourly rate × 1.5 × OT hours × Weeks in pay period

Federal Income Tax (Pub 15-T Percentage Method):
1. Annualize wages: Gross per period × Pay periods/year
2. Subtract withholding allowance ($8,600 Single / $12,900 MFJ)
3. Apply progressive withholding brackets (10%–37%)
4. Divide annual tax by pay periods

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% × min(Wages, $184,500)
Medicare = 1.45% × Wages
Additional Medicare = 0.9% × max(0, Wages − $200,000)

OBBBA Overtime Deduction (2025–2028):
Deductible amount = min(OT premium, $12,500 or $25,000 MFJ)
Phase-out: −$100 per $1,000 over $150K MAGI ($300K MFJ)
Fully phased out at $275K Single / $550K MFJ
Only the premium portion (0.5× of time-and-a-half) qualifies
Not available for Specified Service Trade or Business (SSTB) employees

All figures use 2026 IRS rates: SS wage base $184,500 (SSA), withholding tables from Pub 15-T (Rev. Proc. 2025-32), TCJA rates made permanent by OBBBA. State taxes use simplified effective rates.

Example

Maria — Warehouse Associate in Ohio

Filing Single. $22/hr. Works 40 hours/week. Paid biweekly. Ohio state tax. $100/paycheck to 401(k).

Gross pay (biweekly)$1,760

Federal income tax−$159

Social Security (6.2%)−$109

Medicare (1.45%)−$26

Ohio state tax (3.5%)−$55

401(k) contribution−$100

Take-home pay$1,311

Effective hourly rate$16.80/hr

Maria's $22/hr translates to $16.80/hr after all deductions — 23.6% goes to taxes and retirement. When she works 10 hours of OT, her paycheck jumps by $253 — but her effective OT rate is only $25.30/hr, not $33/hr, because OT is taxed at her marginal rate.

Frequently Asked Questions

How much does an hourly worker actually take home?▼

It depends on your rate, hours, state, and filing status, but most hourly workers take home 70–80% of their gross pay. The biggest deductions are federal income tax (10–22% bracket for most hourly workers), Social Security (6.2%), Medicare (1.45%), and state income tax (0–8% depending on state). Pre-tax deductions like 401(k) reduce your taxable income but also reduce your paycheck.

How is overtime taxed?▼

Overtime is not taxed at a special rate — it's added to your regular income and taxed at your marginal rate. However, because OT pushes your income higher, it may land in a higher bracket. If your regular pay fills the 12% bracket, OT might be taxed at 22%. Under OBBBA (2025–2028), the overtime premium (the "half" of time-and-a-half) is deductible from federal income tax, up to $12,500/year ($25,000 MFJ), with phase-out starting at $150K MAGI.

What is FICA and why is it taken from my paycheck?▼

FICA stands for Federal Insurance Contributions Act. It funds Social Security (6.2% of wages up to $184,500 in 2026) and Medicare (1.45% of all wages, plus an additional 0.9% above $200,000). Your employer matches your contribution, so the total is 15.3%. Unlike income tax, FICA has no standard deduction — it's calculated on your gross wages from dollar one.

Which states have no income tax?▼

Nine states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Working in one of these states means your paycheck is only subject to federal income tax and FICA. New Hampshire eliminated its tax on interest and dividends in 2025, making it fully income-tax-free.

How do I convert my hourly rate to salary?▼

Multiply your hourly rate by 2,080 (40 hours × 52 weeks) for the standard annual equivalent. For example, $25/hr = $52,000/year. But your actual take-home depends on hours worked, time off, and benefits. Use the "Annual Summary" tab to see your real annual earnings — including the effective hourly rate after taxes, which shows what you truly earn per hour of work.

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