UK Overtime Pay Calculator 2026/27

Calculate your gross and net overtime pay. See how much of your overtime you actually keep after income tax and National Insurance.

Regular Pay This Period
£0.00
Overtime Gross Pay
£0.00
Total Gross This Period
£0.00
Tax on Overtime
£0.00
NI on Overtime
£0.00
Overtime Net Pay
£0.00
Total Net This Period
£0.00
Your Hourly Rate
£0.00
Enter your details and click Calculate to see your overtime take-home pay.
Pay Breakdown This Period
How Overtime Tax Is Calculated

Overtime is taxed at your marginal rate · not a special higher rate. HMRC treats all pay in a period as a single sum. This calculator works out your normal period pay, adds overtime on top, then calculates tax and NI on the combined amount. The difference between tax with and without overtime gives the marginal tax cost of the overtime.

Your hourly rate is derived from your annual salary ÷ 52 weeks ÷ hours per week. The overtime hourly rate is this base rate multiplied by your chosen multiplier (e.g. ×1.5 for time and a half).

Overtime Tax · What Do You Actually Keep? 2026/27

Additional tax on overtime hours for England standard taxpayers. Basic rate taxpayers keep 72p per extra £1 · Higher rate keep 52p.

Base Salary Tax Rate on Overtime Overtime Earned Tax+NI Deducted Net Overtime Pay
Under £50,270Basic 20% + NI 8% = 28%£500£140£360
Under £50,270Basic 20% + NI 8% = 28%£1,000£280£720
Under £50,270Basic 20% + NI 8% = 28%£2,000£560£1,440
Above £50,270Higher 40% + NI 2% = 42%£500£210£290
Above £50,270Higher 40% + NI 2% = 42%£1,000£420£580
Above £50,270Higher 40% + NI 2% = 42%£2,000£840£1,160

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Overtime Calculator FAQs

Does overtime get taxed more in the UK?
Overtime is not taxed at a special higher rate · it is added to your normal pay and taxed at your marginal rate. If overtime pushes your total earnings above £50,270, only the portion above that threshold is taxed at 40%. PAYE is cumulative, so any over-deduction during the year is corrected automatically.
How much of my overtime do I actually keep?
Basic rate taxpayers (salary under £50,270) keep 72p of every extra £1 earned in overtime after 20% income tax and 8% NI. Higher rate taxpayers keep around 58p per £1 after 40% tax and 2% NI. Use the calculator above to see your exact figures.
How does double-time overtime work?
Double time means you are paid twice your normal hourly rate for those hours. If your regular rate is £15/hour, double time pays £30/hour. The gross amount is higher, but it is taxed at the same marginal rate as time-and-a-half. There is no legal requirement for employers to offer double time · it depends on your contract.
Can I reduce tax on overtime through pension contributions?
Yes. If your employer offers salary sacrifice, directing overtime pay into your pension reduces your taxable income. This lowers both income tax and NI on that amount. Even without salary sacrifice, you can make personal pension contributions and claim tax relief via Self Assessment, effectively recovering the tax paid on your overtime.

For informational purposes only · Not financial advice · Tax rates shown are for 2026/27