Overtime tax calculator
Overtime is taxed at your marginal rate, not a special one. Enter your salary, hours and overtime rate, and see what those extra hours are genuinely worth once tax and National Insurance come off.
5 hours/week at ×1.5 earns £107.69 gross a week, after tax you keep
£77.54 a week
£4,032.00 a year, 72% of the overtime. Each overtime hour is worth £15.51 in your pocket against a headline rate of £21.54.
Is overtime taxed more?
No, there is no special overtime tax rate. Overtime is ordinary pay, but it stacks on top of your salary, so it is all taxed at your marginal rate while your normal pay enjoys the allowance and lower bands. That is why overtime feels more heavily taxed: a basic-rate worker keeps 72% of each overtime pound, on the figures above, 5 hours a week at ×1.5 earns £107.69 gross but puts £77.54 in your pocket. A payslip in a heavy month can also over-deduct temporarily, because PAYE taxes that month as if you earned it every month; it self-corrects over the year, the same timing illusion as a bonus.
Things overtime changes beyond tax
- Student loans: a heavy overtime month can push that pay period over the weekly threshold and trigger a 9% deduction even if your annual pay is below it.
- Pension: whether overtime is pensionable depends on your scheme, under auto-enrolment “qualifying earnings” it usually is.
- Regular overtime and holiday pay: sustained, regular overtime must by law be reflected in your holiday pay, a detail employers sometimes miss.
- The £100k line: for high earners, overtime counts towards adjusted net income like any other pay.
2026/27 rates, checked 2026-08-28. Annualised figures, a single heavy payslip over-deducts temporarily and self-corrects, as on the bonus page. Method on the about page.