Overtime tax calculator UK (2026/27)
Quick answer: overtime is taxed like the rest of your pay, at 20%, 40% or 45% Income Tax (England, Wales and Northern Ireland) plus employee National Insurance of 8% or 2%. A basic-rate worker keeps roughly 72p of each extra £1. Enter your salary and overtime to see an estimate.
How overtime is taxed
There is no special tax rate for overtime. It is part of your taxable pay, so it is taxed through PAYE at the same bands as the rest of your income. For 2026/27 in England, Wales and Northern Ireland the Personal Allowance is £12,570, basic rate is 20% up to £50,270, higher rate 40% up to £125,140 and additional rate 45% above. Your Personal Allowance reduces by £1 for every £2 of income over £100,000. Scotland has different Income Tax bands.
Employee National Insurance (category A) is 8% on earnings between £242.01 and £967 a week and 2% above that. Overtime can also affect student loan repayments and pension contributions.
Worked examples
| Salary | Overtime | Tax | NI | Kept |
|---|---|---|---|---|
| £32,000 | £3,000 | £600 | £240 | £2,160 |
| £49,000 | £3,000 | £946 | £137.04 | £1,916.96 |
In the second row £1,270 of the overtime falls in the basic-rate band and £1,730 in the higher-rate band, so tax is £254 + £692 = £946. National Insurance is £102.72 on the first £1,284 and £34.32 on the other £1,716, so £137.04. You keep £1,916.96. See the calculator for your own numbers, as band edges move the result.
"Overtime puts me in a higher tax bracket and I take home less" is a myth
Only the part of your income above the higher-rate threshold is taxed at 40%. Earning more overtime never reduces your total take-home pay, except in narrow cases such as the £100,000 Personal Allowance taper and some benefits and student loan thresholds.
Self-employed and day-rate contractors
If you invoice as a sole trader there is no PAYE. Extra days are simply extra income, taxed in your Self Assessment with Class 4 National Insurance. Try the self-employed tax calculator.
Related tools and guides
- Time and a half calculator UK: work out the gross overtime first
- Overtime calculator: any multiplier
- Self-employed tax calculator: for sole traders
- CIS calculator: take-home after CIS
Frequently asked questions
Is overtime taxed more than normal pay?
No. Overtime is taxed at the same rates as your other earnings. It can look like more because extra pay may fall in a higher band.
How much tax do I pay on overtime?
At 2026/27 rates a basic-rate taxpayer in England pays 20% Income Tax and 8% National Insurance on overtime, so keeps about 72%. A higher-rate taxpayer pays 40% and 2%, keeping about 58%.
Can overtime push me into a higher tax bracket?
It can push the top slice of your income into the higher band, but only that slice is taxed at the higher rate. Your total take-home pay still rises.
Why is my overtime taxed so much on my payslip?
Payslip tax can look high in the month because of your tax code and how pay is spread across the tax year. Check your tax code on your personal tax account on GOV.UK.
Sources
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.