4 guides · updated October 22, 2026
Hourly to salary, raises, and the 2025–2028 federal deduction for overtime pay: what counts, the cap and the income limit, and how to find your number — from the law and the IRS.
Calculators for this topic: No tax on overtime calculator · Hourly to salary calculator · Salary to hourly calculator · Pay raise calculator · Hourly paycheck calculator (gross pay)
In-depth guide · Pay & tax
The overtime deduction covers only the FLSA half-time premium, up to $12,500 or $25,000, for tax years 2025–2028. What counts, the phase-out and the forms.
Updated · 10 min read
Guide · Pay & tax
Hourly to salary uses 2,080 hours, but 2026 has 2,000 weekday hours after federal holidays and 2027 has 1,992. Conversions, 27-paycheck years and 2,087.
Updated · 5 min read
Guide · Pay & tax
Raise % = (new pay − old pay) ÷ old pay × 100. Worked hourly and yearly examples, why two 5% raises aren’t 10%, overtime after a raise and real raises.
Updated · 4 min read
Guide · Pay & tax
Most 2025 W-2s don’t show qualified overtime. The IRS Notice 2025-69 methods, the Schedule 1-A lines and the records to keep, with worked numbers.
Updated · 6 min read
Other topics: Hours & time cards · Overtime rules · Rules & records · All guides