Overtime Pay Calculator — Texas (2026)
Overtime in Texas starts with the federal FLSA floor: 1.5× your regular rate for every hour beyond 40 in a workweek. Some states add daily overtime or double-time rules on top. This calculator shows gross overtime pay and what survives federal, FICA and state-free taxation in 2026. Texas does not levy a personal state income tax, so the only mandatory withholding on your earnings is federal income tax plus FICA (Social Security and Medicare).
Texas Overtime Pay Calculator
Your base pay per hour.
Hours beyond 40 in the workweek.
Overtime rules that apply in Texas
Texas follows the federal weekly standard: overtime is owed after 40 hours in a workweek, with no general daily overtime requirement.
The "regular rate" is not just your base hourly wage — non-discretionary bonuses, shift differentials and commissions must be folded in before multiplying by 1.5, which raises the true overtime rate for many energy workers around Austin.
Is overtime taxed more in Texas?
No — overtime is ordinary wages. It can feel over-taxed because per-period withholding tables annualize a big check as if every week looked like that, temporarily withholding at a higher rate that you recover at filing.
Since Texas has no income tax, overtime keeps a larger share than in most states — only federal tax and FICA apply.
Exempt vs non-exempt in Texas
Salaried does not mean exempt. To be exempt from overtime a worker must clear both a salary threshold and a duties test; misclassification is one of the most common wage claims filed in Texas.
Cost of living in Texas sits 8% below the national average (index 92), median household income is $75,780, and a one-bedroom apartment in Austin rents for roughly $1,650 a month.
Local and payroll taxes Texas adds on top
Texas adds no state-mandated employee payroll deduction beyond FICA, so nothing extra is taken from your gross pay at the state level.
Texas funds government through high property taxes (avg 1.68% effective rate) and a 6.25% state sales tax (up to 8.25% with local).
Overtime hours carry exactly the same local withholding as regular Texas hours; the extra pay is taxed at your marginal rates, not at a special penalty rate, even though the deduction line looks bigger.
Working across a state line from Texas
Texas has no income-tax reciprocity agreements, so if you live here and work across a state line you generally file a nonresident return in the work state and claim a credit at home to avoid double taxation.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Austin resident spending part of the year at a client site in California may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Texas tax bill
Texas charges a 6.25% state sales tax, homeowners pay an average effective property tax of 1.68% of market value, and the minimum wage in force during 2026 is $7.25 an hour.
Local add-ons cap the combined rate at 8.25%.
Income tax is only one part of a state's take. Texas recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. With no state income tax, Social Security, pensions, 401(k) and IRA withdrawals are all free of state tax here.
Texas vs California on the same salary
On a $75,000 salary, a single filer keeps about $61,593 a year in Texas against roughly $58,561 in California — a difference of $3,031, or $253 a month.
Effective combined rates are 17.9% in Texas and 21.9% in California. Set that gap against living costs: index 92 here versus 142 there, with property tax at 1.68% and 0.71% respectively.