Texas Overtime Calculator (2026)
Texas has no state overtime law and relies entirely on the federal Fair Labor Standards Act (FLSA) for overtime requirements. Under FLSA, non-exempt employees who work more than 40 hours in a workweek must receive at least 1.5× their regular rate of pay for all overtime hours. Unlike California, Texas has no daily overtime rule — only the 40-hour weekly threshold applies. This calculator also supports two-rate weeks using the FLSA weighted average method (29 CFR § 778.115).
Texas Overtime Parameters
FLSA 29 U.S.C. § 207 · 40-Hour Workweek Standard · 0% State Tax
Calculation Breakdown
Standard straight-time rate up to 40 hours/week
FLSA 29 U.S.C. § 207: Hours worked over 40 in workweek
Mandatory federal payroll taxes
IRS 2026 progressive bracket estimate
Texas Constitution Art. VIII § 24-a prohibits individual income taxes
Net paycheck deposited after federal taxes
•Texas adheres to federal FLSA 40-hour overtime rules. There are no daily overtime requirements under Texas Payday Law.
The Texas Zero-State-Tax Overtime Advantage
In Texas, every dollar of your overtime premium is free from state income tax withholding. While a California or New York employee pays up to 9.3% or 10.9% state and local tax on their overtime wages, your Texas overtime pay is subject only to federal income tax and FICA (7.65%).
How Your Texas Overtime Was Calculated
Statutory FLSA 29 U.S.C. § 207 and Texas Workforce Commission (TWC) guidelines.
Weekly 40-Hour Threshold Evaluation
8.0 OT hrsUnder the federal Fair Labor Standards Act (FLSA) and Texas Labor Code Chapter 61 (Texas Payday Law), non-exempt employees must be paid 1.5× for all hours worked over 40 in a designated 7-day workweek. Texas does not impose daily overtime limits.
Overtime Rate Determination (1.5×)
$42.00 / hrThe statutory overtime rate is exactly 1.5 times the established regular hourly rate.
Overtime Compensation Calculation
$336.00Overtime premium compensation owed for the weekly pay period.
Total Period Gross & Texas Zero-Tax Advantage
$1,456.00Because Texas Constitution Article VIII § 24-a prohibits state personal income tax, Texas workers retain significantly more of their overtime earnings compared to states like California or New York.
How this calculator works
How it works
- 01FLSA Threshold: Overtime begins after 40 hours worked in a workweek (7 consecutive days).
- 02Regular Rate: All hours including overtime are counted; the regular rate equals total straight-time pay divided by total hours.
- 03Overtime Premium: The overtime 'premium' is 0.5× the regular rate for each OT hour (the other 1.0× is straight-time already included in gross pay).
- 04Two-Rate Weeks (29 CFR § 778.115): When an employee works at two different rates in the same workweek, the regular rate is the weighted average (total straight-time earnings ÷ total hours), and the OT premium is 0.5× that weighted rate.
- 05Texas Zero State Tax: Texas has no state income tax, so take-home pay is higher than comparable wages in California, New York, or other income-tax states.
Tax rules that apply
- •Texas adopts FLSA overtime — no separate state overtime law. The weekly threshold is 40 hours (not 44 like Ontario or 8 daily like California).
- •Texas follows the 29 CFR § 778.115 weighted average method for employees who work at two or more pay rates in the same workweek.
- •Certain workers are exempt from FLSA overtime: bona fide executives, administrative and professional employees (white-collar exemptions), outside sales employees, and computer professionals earning $27.63/hr+.
- •The FLSA salary basis test for white-collar exemptions requires a minimum salary of $684/week ($35,568/year) as of the 2019 update.
- •Texas minimum wage follows the federal floor of $7.25/hour — unchanged since 2009.
Current Tax Rates
| Tax / Deduction | Rate | Notes |
|---|---|---|
| OT Threshold | > 40 hours/week | FLSA — no daily rule in Texas |
| OT Rate | 1.5× | Regular rate × 1.5 for all OT hours |
| Texas State Income Tax | 0% | No state income tax in Texas |
| Federal Minimum Wage (Texas) | $7.25/hr | Texas adopts the federal minimum |
| FICA (Employee) | 7.65% | 6.2% SS + 1.45% Medicare on all earnings |
What this calculator assumes
- Overtime computed per FLSA (29 CFR Part 778) — Texas has no supplemental state overtime law.
- Texas has no state income tax; take-home estimates include federal withholding and FICA only.
- Dual-rate weighted average method follows 29 CFR § 778.115.
- Does not account for FUTA, SUTA, or employer-side payroll taxes.
- Tax estimates assume standard deduction and are approximate.
Where our numbers come from
These calculators are based on official government tax rates and rules. We link directly to the source so you can verify everything yourself.
U.S. Department of Labor — FLSA Overtime Rules (29 CFR Part 778)
U.S. Department of Labor — Wage & Hour Division
DOL — Fair Labor Standards Act (FLSA) Overtime Exemptions
U.S. Department of Labor
Texas Workforce Commission — Texas Labor Laws & Minimum Wage
Texas Workforce Commission
Frequently Asked Questions
Does Texas have its own overtime law separate from federal FLSA?
No. Texas does not have a state overtime law. Texas employers are governed entirely by the federal Fair Labor Standards Act (FLSA), which requires overtime pay at 1.5× the regular rate for hours worked beyond 40 in a workweek. Texas does not impose daily overtime (unlike California), and there is no 7th-day rule or double-time requirement. The Texas Payday Law governs wage payment timing and deductions but does not set overtime standards.
How does the FLSA weighted average method work for two-rate weeks?
When a Texas employee works at two different hourly rates in the same workweek — for example, 25 hours as a production worker at $20/hr and 20 hours as a trainer at $28/hr — the FLSA requires the overtime premium to be calculated using a weighted average rate. Total straight-time earnings: (25 × $20) + (20 × $28) = $500 + $560 = $1,060. Total hours: 45. Weighted average: $1,060 ÷ 45 = $23.56/hr. OT premium: 5 OT hours × 0.5 × $23.56 = $58.89. Total gross: $1,060 + $58.89 = $1,118.89. This method is codified in 29 CFR § 778.115.
Is Texas minimum wage the same as the federal minimum wage?
Yes. Texas minimum wage is set at the federal minimum of $7.25 per hour under the Texas Minimum Wage Act (Texas Labor Code, Chapter 62). Texas has not enacted a higher state minimum wage. The federal minimum wage has remained at $7.25/hr since July 2009. Some Texas municipalities (San Antonio, Austin) have attempted to pass higher local minimums, but the Texas Preemption Law prevents cities from setting minimum wages above the state rate.
