Overtime Tax Calculator
Estimate how much Income Tax and National Insurance you might pay on overtime earnings, and what you could take home after deductions. This is a simplified estimate for England, Wales and Northern Ireland taxpayers, not an exact HMRC calculation.
Why overtime can be taxed at a higher rate
Overtime pay is not taxed at a special "overtime rate" — it is simply added to your other earnings and taxed through PAYE at whatever your marginal Income Tax rate is once your Personal Allowance and lower tax bands have been used up. This means that if your normal salary already uses up your basic rate band, extra overtime pay can be taxed at the higher 40% rate, or the additional 45% rate at very high income levels, purely because it is the "last pound" of income for the year, not because overtime itself attracts a different rate.
2026/27 Income Tax bands (England, Wales and Northern Ireland)
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Your Personal Allowance reduces by £1 for every £2 you earn over £100,000, reaching £0 at £125,140. This creates a well-known "60% trap" band between £100,000 and £125,140, where each extra pound effectively loses 40% tax plus a further slice of Personal Allowance. Our calculator above accounts for this taper automatically.
National Insurance on overtime
Overtime also counts towards your gross pay for Class 1 National Insurance purposes. For 2026/27, employees pay 8% National Insurance on earnings between £12,570 and £50,270 a year, and 2% on earnings above £50,270. As with Income Tax, there is no separate National Insurance treatment for overtime; it is simply added to your total earnings for the period.
Scottish Income Tax
If you pay Scottish Income Tax, your bands and rates are different (Scotland uses its own multi-band structure with rates that differ from the rest of the UK). This calculator uses rest-of-UK bands only. National Insurance rates and thresholds are set UK-wide and are unaffected by whether you pay Scottish Income Tax.
What this calculator does not account for
- Student loan repayments
- Workplace pension contributions or salary sacrifice arrangements
- Marriage Allowance or other tax code adjustments
- Scottish Income Tax bands
- Any bonus, benefit-in-kind or additional income beyond salary and overtime
Frequently asked questions
Is overtime taxed more than normal pay?
Not at a different rate, but it can push you into a higher tax band for that pay period if your normal earnings already use up the lower bands, meaning the extra overtime is taxed at 40% or 45% rather than 20%.
Will I get overpaid tax back if my overtime is a one-off?
Often yes. PAYE calculates tax cumulatively across the tax year, so a single month of high overtime that pushes you into a higher band temporarily is often corrected automatically in later pay periods, though this depends on your individual circumstances.
Does overtime affect my student loan repayments?
Yes, student loan repayments are usually calculated on your gross pay above a repayment threshold, so overtime pay can increase the amount deducted for that pay period. This calculator does not include student loan repayments in its estimate.