Your Hours & Rate
| Component | Per Period | Annual |
|---|
The NYC overtime reality: On a $30/hr rate, your overtime hour earns $45 gross but only ~$26 net in NYC after the combined ~42% marginal tax rate. Still worth it — every overtime dollar adds positive take-home — but important to understand. Working 10 OT hours at $30/hr adds ~$260/week net, not $450.
NYC Overtime Rules Explained
Both federal law (FLSA) and New York State law require employers to pay non-exempt employees at least 1.5× their regular rate for all hours worked over 40 in a single workweek. New York follows the federal workweek rule — there is no daily overtime requirement in New York (unlike California).
Key points for NYC workers:
- The 40-hour threshold is measured per workweek, not per pay period
- Exempt employees (salary above the threshold + qualifying duties) are not entitled to OT
- The NYC salary threshold for exempt status is $1,237.50/week ($64,350/year) in 2026
- Some industries (residential building workers, certain healthcare workers) have specific OT rules under CBA agreements
- Tip credits do not affect the OT calculation base rate for most NYC workers
Net OT Premium by Hourly Rate (Single Filer)
How much extra take-home you earn each week from overtime hours, after all NYC taxes.
| Hourly Rate | OT Rate (1.5x) | 5 OT hrs/wk net | 10 OT hrs/wk net | 15 OT hrs/wk net | Marginal Rate |
|---|---|---|---|---|---|
| $20/hr | $30/hr | +$112/wk | +$224/wk | +$336/wk | ~37% |
| $25/hr | $37.50/hr | +$133/wk | +$265/wk | +$398/wk | ~39% |
| $30/hr | $45/hr | +$133/wk | +$265/wk | +$398/wk | ~41% |
| $40/hr | $60/hr | +$174/wk | +$348/wk | +$522/wk | ~42% |
| $50/hr | $75/hr | +$215/wk | +$430/wk | +$645/wk | ~43% |
Estimates assume single filer working standard 40 hrs/week baseline. Marginal rate includes federal, NY State, NYC, and FICA.
Is Overtime Worth It in NYC?
The honest answer: yes, but not as much as you think. In NYC, most workers hitting overtime are in the combined 38–45% marginal tax bracket. That means for every $100 of overtime gross pay, you keep roughly $55–$62 after taxes.
Consider a $30/hr worker doing 10 hours of overtime per week:
- OT gross pay per week: 10 × $45 = $450
- Tax withheld at ~42% marginal: −$189
- OT net pay per week: ~$261
- Annualized OT net benefit: ~$13,572/year
The $261/week is real money — but if you're making decisions about unpaid commute time, work-life balance, or childcare costs that overtime requires, the after-tax value is the right number to compare against those costs. The gross OT pay overstates the actual benefit by roughly 70%.
Frequently Asked Questions
See Your Full Paycheck Breakdown
Use the main NYC Paycheck Calculator for detailed salary, W-2, and annual tax breakdowns.
NYC Paycheck Calculator →