Texas does not have its own overtime law. All overtime in Texas is governed by the federal Fair Labor Standards Act (FLSA): workers earn 1.5× their regular rate for all hours beyond 40 per workweek. Texas has no state income tax, so overtime pay is not subject to state tax.
Texas Overtime Formula
Calculating overtime pay in Texas uses the standard FLSA formula:
Total Weekly Pay = (40 × Hourly Rate) + Overtime Pay
Step-by-Step Texas Overtime Examples
Hourly rate: $25/hour
Hours worked this week: 48 hours
Overtime hours: 48 − 40 = 8 hours
Regular pay: 40 × $25 = $1,000
Overtime pay: 8 × $25 × 1.5 = $300
Hourly rate: $15/hour
Hours worked this week: 45 hours
Overtime hours: 45 − 40 = 5 hours
Regular pay: 40 × $15 = $600
Overtime pay: 5 × $15 × 1.5 = $112.50
🕐 Texas Overtime Calculator — Free & Instant
Enter your clock-in/out times, hourly rate, and lunch break. ClockCalc calculates your Texas overtime pay automatically.
Calculate My Texas Overtime →Texas Overtime Rules: What You Need to Know
Weekly Threshold — Not Daily
Texas follows the federal weekly overtime standard. Overtime only applies after 40 hours in a workweek — not per day. This is different from California, which also has daily overtime rules (after 8 hours in a day).
In Texas, you could work 10 hours on Monday and 4 hours the rest of the week (total 14 hours) and owe zero overtime — because your weekly total is under 40 hours.
Who Is Covered by Texas / FLSA Overtime?
Most hourly workers in Texas are covered. Common exceptions include:
- Salaried employees earning above the FLSA exempt salary threshold ($684/week as of 2026)
- Executive, administrative, and professional employees
- Outside sales employees
- Certain computer employees
- Agricultural workers on small farms
Workweek Definition in Texas
Under FLSA, a "workweek" is any fixed, regularly recurring 7-day period. Your employer sets the workweek — it doesn't have to start on Monday. Overtime resets at the start of each new workweek.
Is Overtime Taxed in Texas?
| Tax Type | Rate | Applies to OT in Texas? |
|---|---|---|
| Texas State Income Tax | 0% | ✅ No state income tax in Texas |
| Federal Income Tax | 10%–37% | ⚠️ Yes (may change with Big Beautiful Bill) |
| Social Security (FICA) | 6.2% | ⚠️ Yes, applies to OT |
| Medicare (FICA) | 1.45% | ⚠️ Yes, applies to OT |
Texas workers have a natural advantage: no state income tax means every dollar of overtime pay keeps more in your pocket compared to workers in California or New York.
Texas vs. California Overtime: Key Differences
| Rule | Texas (FLSA) | California |
|---|---|---|
| OT Threshold | 40 hrs/week | 8 hrs/day OR 40 hrs/week |
| Daily OT? | ❌ No | ✅ Yes (after 8 hrs/day) |
| Double Time? | ❌ No | ✅ After 12 hrs/day |
| OT Rate | 1.5× | 1.5× / 2.0× |
| State Income Tax on OT | ✅ None | ⚠️ Up to 13.3% |
Frequently Asked Questions
What is the overtime rate in Texas?
Texas follows federal FLSA rules: overtime pay is 1.5× (time and a half) your regular hourly rate for all hours worked beyond 40 in a single workweek.
Does Texas have daily overtime?
No. Texas does not have daily overtime requirements. Unlike California, overtime in Texas is calculated on a weekly basis only — you must work more than 40 hours in a workweek before overtime applies.
Is overtime taxed in Texas?
Texas has no state income tax, so your overtime pay is not subject to state income tax. You will still owe federal income tax and FICA taxes on overtime earnings.
How do I calculate overtime pay in Texas?
Texas Overtime Pay = Overtime Hours × Regular Hourly Rate × 1.5. Use ClockCalc for automatic calculation — just enter your clock-in/out times and hourly rate.