The short answer
How does overtime work in Washington?
In Washington State, non-exempt employees earn 1.5× their regular rate for hours over 40 in a workweek. From January 1, 2027, salaried employees of large employers must earn at least $92,196 a year to be exempt from overtime.
Washington overtime and pay figures
| 2026 | 2027 | |
|---|---|---|
| State minimum wage | $17.13/hour | $17.73/hour |
| Exempt salary minimum, employers with 51+ employees | $1,541.70/week ($80,168.40/year) | $1,773.00/week ($92,196.00/year) |
| Exempt salary minimum, employers with up to 50 employees | $1,541.70/week ($80,168.40/year) | $1,595.70/week ($82,976.40/year) |
| Weekly overtime | 1.5× after 40 hours | 1.5× after 40 hours |
In 2027 the exempt salary minimum for large employers rises to 2.5 times the minimum wage, while smaller employers stay at 2.25 times. Salaried workers below these levels must generally be paid overtime, even if their duties would otherwise be exempt.
Worked example
At $24 an hour, a 46-hour week pays 40 × $24 = $960 regular plus 6 × $36 = $216 overtime, a total of $1,176 before taxes.
Does the "no tax on overtime" deduction apply?
Starting with 2025 tax returns, workers can deduct qualified overtime pay on their federal income tax return, up to $12,500 a year ($25,000 for married couples filing jointly). The deduction phases out above $150,000 of modified adjusted gross income ($300,000 joint). Only the extra part of overtime pay, the "half" in time-and-a-half, counts, and only for overtime the federal Fair Labor Standards Act requires: hours over 40 in a workweek. Social Security and Medicare are still withheld from overtime pay. The calculator above estimates the federal premium for your week.
Assumptions and sources
Results are gross pay estimates for non-exempt employees paid by the hour. Special industry rules, local ordinances, union contracts and exemptions can change the result. Rules summarized from the Washington L&I: 2027 minimum wage and exempt salary and the IRS. ToolPinch isn't a law firm; check with your state labor department or an employment lawyer about your situation.
Frequently asked questions
When does overtime start in Washington State?
After 40 hours in a workweek for non-exempt employees, at 1.5x the regular rate.
What is the Washington exempt salary threshold for 2027?
$92,196 a year ($1,773 a week) for employers with 51 or more employees, and $82,976.40 a year ($1,595.70 a week) for employers with up to 50 employees.
What is the Washington minimum wage in 2027?
$17.73 an hour from January 1, 2027, up from $17.13 in 2026. Some cities set higher local minimums.
Does Washington have daily overtime?
No. Overtime is based on hours over 40 in a workweek.
Is this calculator free?
Yes. It runs in your browser, needs no signup and doesn't store your hours or pay.