Hourly pay is easy to compare with a salary once you know the hours. The quick rule is to multiply by 2,080, which is 40 hours a week for 52 weeks.
Below is the full method, including overtime, the new deduction for overtime pay, and what you keep after tax in 2026.
Common hourly rates as a yearly salary
| Hourly | Yearly (40 hours × 52 weeks) | Monthly | Every 2 weeks |
|---|---|---|---|
| $15 | $31,200 | $2,600 | $1,200 |
| $20 | $41,600 | $3,467 | $1,600 |
| $25 | $52,000 | $4,333 | $2,000 |
| $30 | $62,400 | $5,200 | $2,400 |
| $40 | $83,200 | $6,933 | $3,200 |
| $50 | $104,000 | $8,667 | $4,000 |
Overtime and the overtime deduction
Non-exempt workers must be paid at least 1.5× their regular rate for hours over 40 in a week. From 2025 to 2028, you can deduct the extra half (the premium) from federal taxable income, up to $12,500 a year ($25,000 joint). The deduction falls by $100 for every $1,000 of income above $150,000 ($300,000 joint), and married people filing separately can't claim it.
Social Security, Medicare and most state income taxes still apply to all overtime pay.
Worked example
Example: $30 an hour, 40 hours plus 5 overtime hours a week, single
Regular pay: $30 × 40 × 52 = $62,400. Overtime: $45 × 5 × 52 = $11,700. Total: $74,100.
Overtime premium: $15 × 5 × 52 = $3,900, all deductible.
The deduction saves $858 in federal income tax, because it comes off income taxed at 22%.
To see each paycheck with 401(k) and health deductions, use the US paycheck calculator.
How to use this calculator
- Enter your hourly rate and regular hours a week (up to 40).
- Add any overtime hours a week.
- Set how many weeks a year you're paid: 52 if you get paid time off.
- Pick your filing status and state tax rate.
FAQs
How do I turn an hourly wage into a salary quickly?
Multiply by 2,080, which is 40 hours × 52 weeks. $25 an hour is $52,000 a year; $50 an hour is $104,000.
Is overtime tax-free now?
Not completely. From 2025 to 2028 you can deduct the extra half of time-and-a-half pay, up to $12,500 a year ($25,000 joint), from federal taxable income. Social Security, Medicare and most state taxes still apply.
Who gets overtime pay?
Non-exempt employees covered by the Fair Labor Standards Act must get 1.5× their regular rate for hours over 40 in a week. Many salaried workers are exempt.
Should I count weeks I don't work?
If your time off is unpaid, lower the paid weeks. Two unpaid weeks at $30 an hour for 40 hours cut yearly pay by $2,400.
Sources
- US Department of Labor: Overtime pay
- IRS: tax inflation adjustments for tax year 2026 (Rev. Proc. 2025-32)
- SSA: 2026 Social Security changes (wage base $184,500)
Results are estimates and aren't tax, legal or financial advice. For your own return, check with a CPA or enrolled agent. Spotted a mistake? Tell us.