Hourly Paycheck Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: August 19, 2026Hourly Pay Rarely Stays a Round Number
Unlike a fixed salary, an hourly paycheck changes with the hours actually logged — regular hours at the base rate, overtime hours at time-and-a-half, then taxes and deductions applied to whatever that period's total gross pay turns out to be. This calculator builds the paycheck from those raw hours through to a net figure in one pass.
The Formula
Net Pay = Gross Pay − Taxes (FICA + Federal + State) − Deductions
Regular and overtime hours are entered separately for the pay period, then combined into gross pay before the same FICA, federal, and state tax treatment used across this site's paycheck calculators is applied.
A Worked Example
| Line Item | Amount |
|---|---|
| Regular Pay (80 hrs × $22.00) | $1,760.00 |
| Overtime Pay (5 hrs × $33.00) | $165.00 |
| Gross Pay per Period | $1,925.00 |
| Net Pay per Period | $1,450.49 |
Where This Matters
- Variable-hour work — retail, hospitality, and gig-adjacent hourly jobs where hours change week to week and net pay needs recalculating each period.
- Overtime-heavy pay periods — separating regular and overtime hours shows exactly how much of a bigger paycheck came from the 1.5x overtime rate versus normal hours.
- Checking a pay stub — reconstructing gross-to-net from logged hours to confirm a paycheck matches expectations.
How to Use This Calculator
- Enter your hourly rate.
- Enter regular hours worked this period.
- Enter overtime hours worked this period, if any (defaults to 0).
- Select a pay frequency.
- Enter estimated federal and state tax rates as percentages.
- Enter pre-tax and post-tax deductions per period, if any.
- Select Calculate to see net pay per period.
Related Calculations
Price overtime hours on their own with the Overtime Calculator, or log the underlying hours first with the Time Card Calculator.
Mechanics of Hourly Paycheck and Payroll Withholding Calculations
An hourly paycheck calculator determines the exact net take-home pay delivered to an employee after subtracting all mandatory statutory government payroll taxes and voluntary pre-tax and post-tax benefit deductions from gross wages. In modern labor economies, the difference between gross earnings and take-home pay can range from 15% to over 40% depending on tax jurisdictions, filing status, and elective retirement contributions.
The Three Phases of Payroll Calculation
- Gross Wage Determination: Gross Pay = (Regular Hours × Base Rate) + (Overtime Hours × 1.5 × Base Rate) + Shift Premiums + Tips/Bonuses.
- Pre-Tax Deductions: Subtracted from gross wages before calculating taxable income (e.g., Traditional 401k/403b retirement contributions, Health Savings Accounts HSA, Flexible Spending Accounts FSA, and employer-sponsored group health insurance premiums).
- Tax Withholdings and Post-Tax Deductions: Applying federal, state, and local income tax brackets and statutory FICA taxes, followed by post-tax deductions (Roth 401k, wage garnishments, life insurance).
Federal Statutory Payroll Taxes (FICA)
Under the Federal Insurance Contributions Act (FICA), all US employers and employees contribute mandatory payroll taxes:
- Social Security Tax (OASDI): 6.2% of gross taxable wages up to the annual statutory wage base cap ($168,600 in 2024; indexed annually for inflation). The employer matches an identical 6.2%.
- Medicare Tax (Hospital Insurance): 1.45% of all gross taxable wages with no wage ceiling cap. Matched by an identical 1.45% employer contribution.
- Additional Medicare Tax: An extra 0.9% tax withheld from employee earnings exceeding $200,000 for single filers ($250,000 for married filing jointly), with zero employer match.
- Federal Income Tax (FIT): Progressive graduated withholding based on IRS Form W-4 elections, filing status, and taxable wage brackets.
Step-by-Step Worked Calculation Example
Example: Calculating Net Take-Home Pay for a Bi-Weekly Hourly Employee
Problem: An hourly manufacturing specialist earns a base rate of $25.00/hour and works 84.0 hours during a bi-weekly pay period (80.0 regular hours + 4.0 overtime hours at 1.5x). Elective deductions include: $80.00 pre-tax health insurance, and 5% pre-tax 401(k) contribution. Estimated effective tax rates are: Federal Income Tax (10.0%), State Income Tax (4.0%), Social Security (6.2%), and Medicare (1.45%). Calculate: (1) Gross pay; (2) Pre-tax deductions; (3) Taxable wages; and (4) Net take-home paycheck.
Step 1: Calculate Gross Earnings:
Regular Pay = 80.0 hrs × $25.00/hr = $2,000.00
Overtime Pay = 4.0 hrs × ($25.00 × 1.5) = 4.0 × $37.50 = $150.00
Gross Wages = $2,000.00 + $150.00 = $2,150.00
Step 2: Calculate Pre-Tax Deductions:
401(k) Contribution (5% of $2,150.00) = $107.50
Health Insurance = $80.00
Total Pre-Tax Deductions = $107.50 + $80.00 = $187.50
Step 3: Determine Taxable Wage Bases:
FIT and State Taxable Wages = $2,150.00 - $187.50 = $1,962.50
FICA Taxable Wages (Health insurance is FICA-exempt, but 401k is subject to FICA) = $2,150.00 - $80.00 = $2,070.00
Step 4: Calculate Taxes Withheld:
- Federal Income Tax (10.0% of $1,962.50) = $196.25
- State Income Tax (4.0% of $1,962.50) = $78.50
- Social Security (6.2% of $2,070.00) = $128.34
- Medicare (1.45% of $2,070.00) = $30.02
Total Taxes Withheld = $196.25 + $78.50 + $128.34 + $30.02 = $433.11
Step 5: Compute Net Take-Home Paycheck:
Net Pay = Gross Wages - Pre-Tax Deductions - Total Taxes
Net Pay = $2,150.00 - $187.50 - $433.11 = $1,529.39
Conclusion: From $2,150.00 gross earnings, the employee takes home $1,529.39 (71.1% net retention).
Common Pitfalls in Paycheck Calculations
- Assuming 401(k) Reduces FICA Taxes: Traditional 401(k) contributions reduce federal and state income tax liabilities, but they do NOT reduce Social Security or Medicare payroll taxes.
- Failing to Account for Overtime Multipliers: Overtime is calculated at 1.5 times the regular hourly rate, which must also include non-discretionary bonuses in the regular rate of pay.
Year-to-Date (YTD) Wage Base Caps and Paycheck Changes
Employees often notice sudden increases in their net take-home pay during the autumn months. This occurs because the Social Security OASDI payroll tax (6.2%) applies only to gross taxable wages up to the annual statutory wage base ceiling ($168,600 in 2024). Once an employee's cumulative Year-to-Date (YTD) earnings cross this threshold, the 6.2% withholding ceases for the remainder of the calendar year, increasing net take-home pay by $62.00 for every $1,000 earned.
Supplemental Wage Withholding on Bonuses and Overtime
Under IRS regulations, lump-sum incentive bonuses, commissions, and accumulated overtime payouts are classified as supplemental wages. Employers typically apply the statutory flat withholding rate (22.0% for federal income tax on supplemental wages up to $1 million, and 37.0% on amounts exceeding $1 million) rather than standard W-4 payroll bracket calculations.
Statutory Wage Garnishment Disposable Earnings Limits
Under Title III of the Consumer Credit Protection Act (CCPA), the maximum amount that may be garnished from an employee's weekly disposable earnings for consumer debts is strictly capped at the lesser of: (1) 25% of weekly disposable earnings; or (2) The amount by which weekly disposable earnings exceed 30 times the federal minimum wage ($217.50/week).
State Disability and Paid Family Leave Insurance Deductions
Several US states (including California, New York, New Jersey, and Washington) mandate employee payroll deductions for State Disability Insurance (SDI) and Paid Family and Medical Leave (PFML). These state payroll taxes (typically 0.4% to 1.1% of gross wages) fund temporary wage replacement benefits during employee medical disabilities or bonding leave with newborn children.